Liquefied Natural Gas Feasibility Study | FTI Consulting

Liquefied Natural Gas Feasibility Study

Economic Consulting | Energy, Power & Products (EPP)

December 2, 2019

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The Green Cape Sector Development Agency engaged FTI Consulting, Delphos International, PRDW Africa, Granherne and Webber Wentzel to assess the viability of the Western Cape liquefied natural gas import and gas-to-power project. The study was conducted on behalf of the Western Cape government and funded by the U.S. Trade and Development Agency.

The Study forecasted market demand for natural gas, the performance of the underlying assets of the Project, and its overall socioeconomic benefit to the Western Cape. FTI Consulting experts led the market demand study and socioeconomic impact analysis of the Project. In addition, FTI Consulting developed the decision support model (DSM) that incorporated these elements as well as the financial, engineering and contractual design analysis undertaken by the partnering organizations. The DSM allowed Project stakeholders to test the impact of changes in key Project variables on Project outcomes through 2050.

According to the Study, the Project would be economically and financially supportive of a standard-size floating storage and regasification unit. Main findings include:

  • Implied demand of 1.9 million tonnes per annum (MTPA) in 2024, rising over 40% to 2.7 MTPA in 2050
  • $315 million per year in additional GDP for the Western Cape, on average
  • $78 million per year in additional national, provincial, and local tax revenues, on average
  • 907,000 tonnes of reduced CO2 emissions each year
  • 13,000 new jobs supported, on average, from 2024 through 2050

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