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Picture. REUTERS/MICK TSIKAS
Picture. REUTERS/MICK TSIKAS

Canada-listed Africa Energy Corp is aiming to start production from SA’s gas discovery by 2033, its CEO, Robert Nicolella, said on Tuesday, as it forges ahead with a project abandoned by former operator TotalEnergies.

The company is awaiting regulatory approval for a reworked environmental authorisation to survey Block 11B/12B off southern coast.

Using domestic gas is a pillar in the government’s strategy to diversify away from coal-fired power generation, A flurry of new projects are being pursued including SA’s first liquefied natural gas import terminal along the east coast.

“Our 11B/12B indigenous gas should be very competitive compared to imported LNG,” Nicolella said from the Africa Energy offices in Cape Town.

Nicolella said the company was studying various ways to market the gas, though its preference is to supply a gas-to-power plant. SA is targeting 6,000MW of new gas power projects.

Africa Energy is in talks with state-owned PetroSA to use some of its infrastructure to land gas from the Brulpadda and Luiperd fields at Mossel Bay.

TotalEnergies first mooted using PetroSA’s infrastructure, which includes the FA offshore platform in Block 9, to help accelerate production.

The idea was to connect Block 11B/12B to existing subsea pipelines that run to the FA platform and from there onwards to Mossel Bay.

“It could be a commercial alternative. It’s an option, without a doubt,” Nicolella said of using PetroSA infrastructure.

Africa Energy’s majority-owned local subsidiary, Main Street 1549, was left as operator of Block 11B/12B after TotalEnergies and joint venture partners QatarEnergy and Canadian Natural Resources Ltd decided to leave the project last year.

Announcing its withdrawal last July, TotalEnergies said it appeared to be “too challenging to economically develop” and monetise the gas discoveries for the domestic market.

Main Street will hold a 75% participating interest in the block and Arostyle Investments the remainder, according to Africa Energy Corp’s website.

Reuters

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