Pretoria — WorleyParsons has been contracted to conduct both the feasibility study and Front-End Engineering Design (FEED) of PetroSA's new Liquid Natural Gas (LNG) import facility in Mossel Bay.
The national oil company on Monday said it had been investigating the possibility of importing LNG to supplement dwindling gas reserves at the company's Gas-to-Liquids (GTL) refinery in Mossel Bay.
The project has previously encountered several challenges, including commercial viability.
PetroSA's revised proposal involves the importation of LNG into Mossel Bay through a Floating LNG facility (FLNG).
The FLNG comprises a breakwater and berth structure allowing a permanently moored Floating, Storage and Re-gasification Unit (FSRU) to discharge vaporised LNG into a sub-sea and an overland pipeline leading to the Mossel Bay GTL refinery.
According to PetroSA, the feasibility study will assess the technical and economic characteristics of various sites while also taking into account socio-environmental issues.
The FEED phase will develop the designs for the preferred sites to a sufficient level of detail to accurately estimate the project costs and economics to make a final investment decision in the second half of 2013.
Group CEO of PetroSA, Nosizwe Nokwe-Macamo, said the establishment of a LNG facility in Mossel Bay was critical to the sustainability of the company's GTL refinery.
"The LNG project will allow additional time for sourcing further feedstock through either further indigenous production, nearby sources of production or additional LNG.
"Employment levels at the refinery and PetroSA's contribution to the economy of the Southern Cape and the country will be maintained. This will see our GTL refinery continuing to produce liquid petroleum fuels, thus contributing to security of fuel supply for the country," Nokwe-Macamo said.
WorleyParsons is considered a world leader in the design and development of LNG import facilities, having completed more than 10 similar projects in various countries around the world.