Price will be a critical incentive to persuade SA’s industrial and transport sectors to switch from their existing fuel sources to liquefied natural gas (LNG). Government policy can play a role in influencing the price, Kishan Pillay, director of upstream and midstream oil and gas industrial development at the Department of Trade and Industry, told a South African Oil & Gas Alliance presentation on Tuesday. The government has started to develop a gas strategy as substantial offshore LNG discoveries in Mozambique and studies on shale gas fracking in the Karoo indicate there may be regional potential. The first step is intended to be the building of coastal power stations fed with imported LNG to provide the anchor demand for investment in infrastructure and market development. Pillay said the department had studied how the first 15 years of gas industrialisation, based on imported LNG, could be encouraged. By looking at the industrial and transport sectors in the KwaZulu-Natal-Gauten...

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