IGUA-SA is focused on gas energy that include all hydrocarbon gases transported by pipeline, including natural gas, artificial gas, hydrogen rich gas, methane rich gas, synthetic gas, coal bed methane gas, liquefied natural gas, compressed natural gas, re-gasified liquefied natural gas, liquefied petroleum gas or any combination thereof.

BACKGROUND

The IGUA-SA has significant technical and economic expertise on gas energy matters and aims to be a respected and non-partisan organisation dedicated to working towards a sustainable gas energy industry. The IGUA-SA was established in 2018, and is a voluntary, non-profit association consisting of the gas energy consumers in Southern Africa.

IGUA-SA members have the view that:

  • A healthy and effective gas energy industry is essential to the long term economic growth and social well-being of all South Africans;
  • The health and effectiveness of the gas energy industry can be enhanced by active involvement, engagement and participation in energy-related activities which have a bearing on the business of gas energy users and by co-operation with other stakeholders; and
  • That a strong synergy on energy-related matters between gas energy users will allow for a common vision on the future of this energy sector.
Refinery Detail At Night

CONTEXT OF GAS IN SOUTH AFRICA

The development of the natural gas industry holds significant opportunity for socio-economic growth in South Africa. It has the potential to ensure long term fixed capital investment and rendering the mining, energy and manufacturing sectors more efficient and globally competitive. Although the South African Government is committed to diversifying the energy mix away from coal to cleaner energy, there are still several difficulties in the way of achieving the full economic potential for the supply and consumption of natural gas in South Africa. These include the lack of clear and appropriate supporting policies that will support further investment in the sector; the uncertainties with regard to the availability of secure and reliable supply of natural gas; and the determination of long term demand for natural gas in the region.

Provided that policymakers focus on understanding what is needed to leverage these resources to stimulate economic growth, the risk remains that natural gas resources remain underdeveloped, or that it will be exported elsewhere with little consideration for the potential it holds for significantly stimulating economic growth in the region.

Large scale natural gas users remain cognisant of the above as it is desirous of addressing the mix in energy usage to cleaner and more efficient sources such as natural gas, to mitigate business risk, and to define its long-term energy dependent fixed capital investment programs.

ACTIVITIES & FOCUS AREAS OF THE IGUA-SA

Policy & Technical Services

A critical function of the IGUA-SA is to engage with National Government, NERSA and other stakeholders on policy, legislation, pricing and discussion papers which are published from time to time. Through the IGUA-SA, the interest of industry will be represented at appropriate forums.

Engagements & Representation

It is a common cause that members of industry often have other commitments that precludes appropriate representation at certain levels. The nurturing of relationships with key business associations and various business forums, engagements and attendance on behalf of the IGUA-SA members at relevant workshops, conferences and task teams.

Special Project Management Services

The IGUA-SA will from time to time embark on specific projects to provide specialist legal, technical or economic insights to advance its agenda. These special projects are from time to time identified as part of the strategic objectives of the IGUA-SA and approved by the Exco based on associated proposals, discussions and budgets i.e. for external subject matter expertise on policy, legislation or discussion papers.

Economic and commercial factors

Key to the development of the natural gas market in South Africa, is an understanding of the global natural gas markets, global pricing and cost drivers. The development and establishment of a library of market information accessible to members that assists with benchmarking, other commercial matters and respective price negotiations between members and gas suppliers.

Spokesperson

The Project Management Office (PMO) provides a point of contact for all internal and external enquiries made to the group. In this way the PMO provides a filtering and screening service to the group to IGUA-SA and ensure that enquiries and information reach the right person and audience.

Supply side

As demand for gas continues to outstrip supply, coupled with limited resource development, common ground and clarity needs to be found between current suppliers, users and stakeholders in the gas value chain. Industry also need to engage new potential entrants to the gas market with a view to guide and assist these entities to develop the South African gas market to its full potential.

Communication

Keep members informed through the most appropriate communication channels. In addition to the development of an appropriate branding, these channels include regular communication via newsletters, reports, media and notice alerts and electronic documents.

Secretariat Function

The IGUA-SA is managed in accordance with the agreed and ratified Constitution, that includes a dedicated back office with recordkeeping, accounting management and project budgeting, document management, compliance, meeting rooms etc.
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