Wits Business School (ETDs)

Permanent URI for this communityhttps://hdl.handle.net/10539/37941

Browse

Filters

2023 - 20242

Settings

Has files: YesSubject: search.filters.subject.Natural Gas

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The successful implementation of LNG aggregation for market development
    (University of the Witwatersrand, Johannesburg, 2024) Moodley, Letitia Anthia; Young, Bruce
    In the context of the global transition towards sustainability, most countries still grapple with energy security issues and a heavy reliance on fossil fuels as an energy source. Natural gas is proposed as a significant source of energy within global future efforts to diversify the energy system. The development of the natural gas market is therefore imperative to achieve the global energy transition goals as LNG has been identified as an ideal transitionary fuel (Hafeznia, Pourfayaz, & Maleki, 2017; Mohammad, Mohamad Ishak, Mustapa, & Ayodele, 2021; Safari, Das, Langhelle, Roy, & Assadi, 2019). This research report assesses the types of LNG aggregation implemented by countries and the effectiveness of the implementation of LNG aggregation as an energy policy instrument. The determinants of the identified criteria, based on the 4-As framework, were collected, and normalised via the unitization method. Multi-criteria analysis was utilized for the aggregation of the determinants, allowing for the analysis of the function which, in this research report, is the success of LNG aggregation implementation as energy policy. The analysis provides for the top performing country based on the indicators identified for each criterion of the 4As framework, from which, the success factors of LNG aggregation are unpacked. Sixty-four countries are identified as trading in LNG, of which, eleven were identified as having implemented LNG aggregation strategies. The criteria of the 4A’s framework, affordability, availability, acceptability, and applicability, are utilised to define a set of indicators which allowed the eleven countries to be ranked based on a performance score. The United States, ranking first, implements a block aggregation strategy which has been complimented by the country’s success factors. The country has a mature legal environment which has provided reassurance to the global market and resulted in the attraction of investment, transforming the country into a net exporter of energy. The United States has flexibility in its policies which allowed for the production of non- conventional Shale gas. Russia, ranking second, implements single buyer and brokerage aggregation strategies which has enabled the country to become a significant participant within the global LNG market. This successful implementation of the aggregation strategy is underpinned by the vertical integration of the state-owned gas company. The third ranked country, Trinidad and Tobago, has successfully implemented a single buyer, single seller aggregation strategy which allowed the infant market to develop over time. The country strives towards the ease of doing business for global participants, provides Created by Terri Carmichael at Wits Business School; terri.carmichael@wbs.ac.za iii government support and the ability to absorb market fluctuations. Lastly, Singapore implements a single-buyer aggregation strategy. The success factors, of which, have been the countries complimentary incentives for investment and trade, government support, policy driven incentives, a well-developed legal system and agility within policy
  • Thumbnail Image
    Item
    The role of natural gas in the current energy transition: A South African Focus
    (University of the Witwatersrand, Johannesburg, 2023) Hough, Lize; Chitima, Kurai
    Africa’s growing urban populations and industrialisation mean rapid growth in energy demand. Natural gas is facing a potential turning point in Africa. There have been major discoveries in recent years in East Africa, Egypt, West Africa, and South Africa. Natural gas has the potential to mitigate Africa’s energy challenges and stimulate economic growth with increased use. The purpose of this qualitative study was to investigate the role that natural gas plays as an energy accelerator in the current energy transition of South Africa. South Africa has an energy crisis with increased stages of possible load shedding, and commitments to reduce CO2 emissions. South Africa’s electricity mainly depends on coal-based energy through its primary electricity supplier Eskom. For South Africa to adapt to a more diverse energy mix and to enlarge the role of natural gas has not been studied, infrastructure forms a large part of the strategy to grow and transform. However, the natural gas infrastructure of South Africa is underdeveloped and limited but its neighbouring countries, Mozambique and Namibia, have discovered large natural gas reserves that could be accessed to supply South Africa with natural gas. This qualitative research study used semi-structured online interviews of 17 participants with industry-specific experience and knowledge. A thematic analysis affirmed that natural gas could serve as a bridge between traditional fossil fuels and renewable energy solutions. However, the current underdeveloped natural gas infrastructure imposes limitations. The underdeveloped natural gas infrastructure is mainly due to three causes, limited government support, access to funding and investment, and the supply of natural gas