'Local, SADC energy security more sensible'

South Africa may need to review its energy policies to be more neighbour-centric according to a local chamber.

Cape Town Regional Chamber of Commerce and Industry said that the discoveries of on-shore methane gas in southern Africa meant a “complete reassessment of the country's energy policies” was necessary.

Gerald Wolman, president of the chamber, said that recent gas discoveries could have a far-reaching economic impact on the economy and stability of the southern African region.

South Africa has of the world’s largest coal reserves, and over the past few years companies have prospected for coal-bed methane in about a dozen sites.

Anglo Operations discovered a one trillion cubic feet reservoir of the gas in the Waterberg coal fields, in the north of the country. Just across the border, neighbouring Botswana has a reservoir of about 60-trillion cubic feet.

Wolman said that it would be more sensible for South Africa to be signing energy security deals with Botswana, than with distant countries like Venezuela.

“We should be working with our neighbours because that will produce the best results for the region,” he said.

Methane gas has the potential to generate electricity, or for heating and liquid fuels.

“South Africa has the technology to convert this gas into liquid fuels and Botswana has the gas. [Botswana] is also a stable country and co-operation would be in the best interests of the Nepad deal,” he added.

Botswana and the northern parts of South Africa are often dry for long periods. However, the chamber added that gas power stations where ideal as they had small footprints and did not need water for steam or cooling.