Shell reckons an energy crisis looms in SA(SABC)
Oil company Shell says introducing gas as a large contributor to the energy supply in the country could be a game changer. Shell representatives were speaking at the Africa Energy Indaba taking place in Sandton, north of Johannesburg.
The oil company has applied for exploration rights to look for shale gas in the Karoo, but environmental groups are opposing it. Shell’s Jan Willem Eggink says having a more stable energy supply, which is not as dirty as coal, could benefit the economy.
He says, “Some of the gas can immediately be converted into electricity, it is required here as you have the energy crisis looming in South Africa.”
Eggink says other gasses could go to new industries, something that is seen in the United States, noting that there is indication that there is a lot of gas available in the country.
It’s a little disconcerting that there is enthusiasm for gas to the extent that it’s competing for limited capital with renewables
He says security of supply is not an issue anymore, with the price being low. Having it in SA would result in creation of heaps of jobs, which is exactly what is needed.
Meanwhile, the WWF’s Programme Manager for Climate Change, Richard Worthington, says gas shouldn’t be looked at as a major contributor to the country’s energy sector, but only as a transitional energy source while infrastructure is being built for renewable energy sources.
Worthington says it’s a little disconcerting that there is enthusiasm for gas to the extent that it’s competing for limited capital with renewables. “We think that the best return on investment for SA at this time is in renewable energy and energy efficiency and that should be given top priority.” He also says renewables should be prioritised because of the social benefits that can be delivered.
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Article source: http://www.sabc.co.za/news/a/30b81f004a411e3e933e9f4da4a4c0cb/Shell-intensifies-efforts-to-obtain-shale-gas-exploration-rights