GLNG: South Africa rejects Karpowership applications for LNG-to-power projects

South Africa’s Department of Forestry, Fisheries and the Environment (DFFE) has decided against giving Turkey’s Karpowership permission to go ahead with three LNG-to-power projects.
DFFE announced its decision in a statement dated June 24. “The competent authority in the department has decided, after due consideration of all relevant information presented as part of the environmental impact assessment process for all three applications in question, to refuse the applications for the environmental authorisations,” it said. The department said it had made the decision because Karpowership had not yet had the time to assess the environmental impact of the projects.
The Turkish company began seeking environmental approvals for the establishment of LNG-to-power facilities in the ports of Coega, Richards Bay and Saldanha in October 2020, when it was chosen by the South African Department of Mineral Resources and Energy (DMRE) to execute projects at these three sites. In its applications, it outlined plans for anchoring paired floating storage and regasification units (FSRUs) and powerships in each port. The powerships were to have a combined generating capacity of 1,220 MW.
DMRE selected Karpowership within the framework of an emergency effort to alleviate South Africa’s ongoing electricity shortages. This effort, known as the risk mitigation independent power producers programme, was designed to make another 2,000 MW of generating capacity available within a short period. However, DFFE’s ruling may prevent the Turkish company from meeting its obligation as a preferred bidder to wrap up agreements by the end of July.
A spokesperson for Karpowership told Reuters last week that her company intended to appeal against DFFE’s decision. She also asserted that Karpowership had been the target of a “misinformation campaign” that had raised undue concerns about the risks of the LNG-to-power projects.