iGas

Postal address
PO Box 786141
Sandton, 2199
South Africa

Telephone
+27 11 280-0300

Fax
+27 11 880-9803

iGas, or the South African Gas Development Company, is mandated to act as the official State agency for the development of the hydrocarbon gas industry in Southern Africa.

iGas, a 100% subsidiary of CEF, specifically promotes the diversification of energy usage into hydrocarbon gas and may assist in ventures that facilitate the usage of hydrocarbon gas.

The mandate of this company is to:

 Enter into joint ventures for gas transmission pipelines and related projects, using sound business principles.;

 Advance the energy goals as set out by the government; and

 Focus on investments in SADC and African countries.

Rompco Pipeline

In 2004/2005 financial year, both the iGas and CEF boards gave their consent for iGas to take up a 25 percent equity stake in the Republic of Mozambique Pipeline Investment Company (Rompco).

Rompco, a fully owned subsidiary of Sasol, owns a natural gas pipeline from Mozambique to South Africa. Gas has been flowing through the pipeline from the Pande and Temane fields in Mozambique to Secunda since March 2004. About 90-million gigajoules a year are transported through the 865km pipeline to customers in South Africa. This is roughly equivalent to the output of a gas to synthetic fuel plant of about 39 000 barrels a day. It is expected that this amount will increase to 120-million gigajoules by 2008.

The gas from Mozambique is marketed by Sasol in Gauteng and Kwa-Zulu-Natal, primarily to industries. The domestic market is limited to the gas distribution pipelines which, for Gauteng, are operated by eGoli Gas.

iGas is the South African representative at the International Gas Union. The union has members from about 67 countries, associate members from the national and multinational oil and gas companies, and associated members from world organisations such as the World Bank.

The future

The South African government has tabled an Energy White Paper which encourages natural gas, as a clean-burning fuel, to play a role in the future of the country's diversified energy economy.

Further development of the gas fields around Southern Africa will act as a spur to creating a more comprehensive natural gas infrastructure. It is believed that more gas could be found in Mozambique near the existing Pande and Temane fields.

The option of introducing liquefied natural gas (LNG) into South Africa is being carefully and thoroughly examined. A feasibility study has been conducted for a LNG terminal in the Eastern Cape area.

Feasibility studies on the southwest coast of South Africa have shown promise. The extraction of natural gas, or methane, from coal beds also shows promise for South Africa and its neighbours.