A gas-to-power project under development is set to become a significant addition to South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), delivering much-needed dispatchable capacity and laying the groundwork for a viable liquefied natural gas (LNG) market.

This potential project is being spearheaded through a collaboration between gas trader Spring Lights Gas (SLG) and engineering consultancy Alpenglow Consulting. They are developing a gas-fired facility, complete with supporting infrastructure and grid connection to help South Africa “keep its lights on”.

The goal is to provide flexible, cleaner-burning energy in line with the country’s broader power system reform and energy transition ambitions.

Alpenglow Consulting engineering consultant Mwabi Chilembo notes that “it is not just a power plant. It’s a cornerstone for establishing long-term gas demand in the country”.

The initiative began when the SLG team saw a gap in the market and responded to an REIPPPP bidding round  for reliable power that could keep the grid stable as more solar and wind energy were integrated. The developers realised LNG sourced natural gas could be a flexible solution, providing peak and mid-level power while meeting untapped industrial gas needs.

The first steps of the project focused on the feasibility of building and operating the plant, as well as speaking to stakeholders within the industrial zones, in KwaZulu-Natal, that could benefit from its construction.

“We looked at areas with existing gas infrastructure and a need for energy. KwaZulu-Natal is a good fit because it has a busy port, factories that use a lot of power and existing gas pipelines.”

The team is working on attaining permits and choosing contractors and hopes to secure funding by mid-2026, with the power plant expected to start operations towards the end of 2028 or early in 2029. It is also finalising the site and negotiating with possible clients and investors.

Meanwhile,  Chilembo notes that there are issues to address: “We need more regulatory certainty on pipeline access, clearer wheeling frameworks and faster permitting, especially around fuel infrastructure. Government has shown intent, but execution is where we need urgent movement.”

From a technical standpoint, Alpenglow Consulting is acting as lead within an extensive owner’s engineer team, supporting the project from concept to commissioning. The scope includes engineering design reviews, emissions compliance, dispatch modelling, procurement support and risk mitigation.

“We’re helping ensure [that] this project is technically and commercially bankable. That means aligning design choices with lender requirements, modularity for scalability and system flexibility to manage fuel and grid risk,” explains Alpenglow Consulting director Amalesh Authar.

Alpenglow’s role also includes managing the industry specialists around technoeconomic modelling and advisory services to support commercial structuring. It is working closely with developers and lenders to de-risk early-stage decisions.

“These plants must start up in under 30 minutes, ramp rapidly and deliver high availability. They can potentially displace diesel peakers and act as anchors for LNG terminals by creating predictable gas demand.”

Authar adds that SLG brings deep market insight and existing customer relationships to the partnership. As one of South Africa’s largest independent gas traders, the company is positioning itself as an LNG aggregator capable of balancing supply logistics with industrial demand.

Making LNG viable

“This gas-to-power project is one of the many gas-to-power initiatives being driven by SLG and  could create the baseload capacity needed to make LNG more viable in South Africa. That, in turn, opens the door for supply to extend beyond the power plant to industries such as manufacturing, mining, and food and beverage,” says Chilembo.

To support this, SLG is offering long-term gas supply agreements with reliability guarantees and bankable pricing. The aim is to drive fuel-switching from diesel while giving industrial users the confidence to invest in gas-compatible systems.

Further, investor appetite for the project is growing, with several local and international financiers in active discussions.

“There is strong interest, particularly where the project links to decarbonisation, job creation and energy resilience. But policy uncertainty and long permitting timelines still present barriers,” says Chilembo.

Alpenglow notes that project bankability is tied closely to regulatory alignment: “The Integrated Resource Plan and Gas Master Plan help guide development, but without coordination between fuel and power infrastructure planning, timelines start to slip,” says Authar.

Design resilience is another priority. The project is being structured to operate under varied fuel sourcing scenarios, including LNG imports, domestic gas and even temporary compressed natural gas solutions where applicable. Pricing strategies are also being diversified to account for global volatility.

Alpenglow  is selecting technologies that can operate across a range of fuels and building optionality into logistics, as  “you have to futureproof projects like this” amid global and local uncertainties.

“It’s not just about generation. It’s about building the market and systems to support gas in South Africa for decades to come,” Authar concludes.