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Price of electricity affects local gas-to-power projects

By:  
Creamer Media Reporter
 
One of the biggest challenges of implementing gas-to-power projects in South Africa is the volatility of the natural gas price, compared with that of electricity, says consultancy firm WSP Africa generation and power regional director Martin Mkhabela. This volatility is caused by the pricing formula used by most liquefied natural gas (LNG) suppliers, where LNG is indexed to the price of brent crude oil and sold in US dollars, he says.
 
 
 
 
 

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