| Empowerment group Bataung to launch R80-billion energy project |
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NT Energy Africa:
Bataung Oil & Gas Empowerment group Bataung Oil & Gas, with its partners NT Energy Africa and the Central Energy Fund (CEF) are to begin exploration for coal bed methane reserves as part of the development of sustainable sources of alternative energy in South Africa. The announcement comes following the granting of rights over some 250 000 hectares in the Free State, Mpumalanga and Limpopo provinces. NT Energy Africa and the CEF have formed a joint venture company GascoSA which will be responsible for exploration activities at various sites across the country. The project, which was conceptualized by Bataung and NT Energy Africa, was subsequently presented to the Department of Minerals and Energy who endorsed the project as part of its mandate to secure the security of energy for the country. The project presents a potential investment of US$10-billion (R80-billion) over the next 7-10 years in infrastructure and pipeline role out. To date R100-million has been committed to the exploration stage of the project, which commenced in August. Funding for the exploration phase of the project is being provided by NT Energy, with the balance for production and infrastructure development will be jointly secured by both NT Energy and Bataung. “The development of sustainable sources of alternative energy has become a strategic priority for South Africa, especially as current demand continues to outstrip capacity. Coal bed methane and the conversion of gas to liquid fuels provide a real, clean and long-term alternative to the current energy crisis”, said Dr Kinesh Pather, managing director of Bataung Group. “NT Energy Africa began initial drilling to confirm the existence of coal deposits in the Free State in August. To date more than 350 coal intercepts have been compiled over 50 000 hectares. This confirms both the source of coal as well as the massive thickness of the seams,” said NT Energy Africa managing director, Chris Mumby. Drilling is also currently underway in Mpumalanga and will commence in Limpopo in the New Year. The economic impact of a cleaner alternative energy source in South Africa is immense. Not only will it mean that as a country we are less reliant on imported energy and energy costs, but it will also create large scale full time employment and development opportunities as well as environmental benefits,” said Pather. Bataung Group chairman Amb. Billy Modise said the project came at a time when the need to diversify the sources of energy for the country had become a fundamental reality. “For South Africa to meet the development and job creation targets outlined in ASGISA, the development of a sustainable source of alternative energy has become non-negotiable,” he said. Included in the consortium with Bataung is women’s group Seschaba Womens Investments. |