Shell applies for rights to explore for natural gas in Karoo Basin

Shell applies for rights to explore for natural gas in South Africa's Karoo Basin

This article was first published on energy-pedia.com

Shell has applied for rights to explore for natural gas in the Karoo Basin. If natural gas is found in sufficient quantities, it could provide South Africa with a stable natural gas supply for power generation. 

In 2009, the Petroleum Agency South Africa (PASA) awarded Shell a Technical Cooperation Permit (TCP) for a one-year study to determine the hydrocarbon potential in parts of the Karoo Basin in central South Africa. See: Shell awarded permit to study natural gas potential in central South Africa. The study provided Shell with a better understanding of the area’s geology and shale gas potential, establishing the scope to pursue natural gas exploration. 

In December 2010, Shell submitted three separate exploration licence applications, each approx. 30,000 sq kms in size. The area covered by the applications is situated in the south and central part of South Africa, incorporating land in Western Cape, Eastern Cape and Northern Cape provinces. 

PASA has notified Shell to prepare an Environmental Management Plan (EMP) as part of the licence application process. 

As required by South African regulations, in January and February 2011, Shell will undertake the first of a series of public consultations, facilitated by independent consultants Golder Associates. The consultation schedule will be published in newspapers and will be broadcasted on radio during the first half of January 2011 to give sufficient notice for participation. 

After completion of the EMP, it will be reviewed by PASA as part of the process to consider whether to grant exploration licences. Next step is to carry out environmental studies and apply for regulatory permits to allow Shell to commence operational activities on the ground.

 For further information regarding the petroleum potential of the Karoo Basin, see The Petroleum Potential of South Africa's Onshore Karoo Basins

 Source: Shell