Karpowership plans three LNG-to-power projects in South Africa

Turkey’s Karpowership, part of Karadeniz, is looking to deploy three LNG-to-power projects in South Africa. These developments could include energy giant Shell as well as one of the world’s largest LNG carrier operators, MOL.

South Africa recently selected Karpowership SA, a South African unit of Karpowership, as a preferred bidder for the three projects totaling 1220 MW in the Ports of Coega, Saldanha, and Richards Bay.

The country in total awarded eight power projects for a total 2,000 MW capacity under the risk mitigation independent power producers procurement programme.

South Africa is looking to find the cheapest and quickest options to ease a big power shortage. The preferred bidders must reach financial close by the end of July due to the urgency to bring needed power to the country.

Karpowership says its LNG-to-power chain and unique powerships offer a solution that “promises fast-track access to reliable electricity.”

To remind, the firm announced its first LNG-to-power project in September last year in Indonesia using a small FSRU that feeds the firm’s 125MW powership Zeynep Sultan.

Projects to include Shell and MOL

Karpowership says the new South African projects would benefit from its relations with global partners such as Royal Dutch Shell and Japan’s MOL.

The firm cited Shell as its “exclusive” LNG supplier while MOL is the firm’s main partner in KARMOL. The JV recently revealed it would soon send its first 125,000 cbm FSRU to Senegal to serve the country’s maiden LNG-to-power project.

“Our powerships, which are fully self-contained floating power stations that operate on regasified LNG, together with specialized FSRUs, are immediately available for deployment in South Africa,” the firm said.

“Using LNG, powerships generate electricity at an affordable all-inclusive delivered cost, which includes all capital costs such as fuel, equipment, as well as all operational and maintenance costs,” it said.

Karpowership added it had already been working with local and international lenders as part of its bid submission and would “continue these efforts.”

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