GEORGE NEWS - The announcement by Total that it has made a significant gas condensate discovery 175 kilometres off Mossel Bay, could have significant economic implications for the Garden Route. Role players emphasised it is still early days, but there is no doubt it could change the face of the economy of the Garden Route.
According to reports the Brulpadda (bullfrog) well is one of several highly anticipated exploration prospects for Total. The company has previously indicated that the field could hold 500 million to over one billion barrels of oil equivalent.
Dr Dennis Farrell, chairperson of the George Business Chamber, said that, since at this stage not much is known, any response would be pure speculation. "However, we should expect that there will be a substantial shift in economic activity to the Southern Cape," he said. "The challenge is going to be on the present infrastructures of the various towns inclusive of smaller towns such as Albertinia, and we could in the very short foreseeable future experience 'migration' of people to Mossel Bay and the surrounding towns. News such as this, the gas find, starts to raise expectations and hope with people, but we need to understand that it takes time before construction and 'commissioning' commences. This migration is going to add to the present unemployment rate, as job opportunities will only start to come to fruition once the project is commissioned."
Image: www.africaenergycorp.com
Industrial hub
According to Farrell, Mossel Bay could become the industrial hub of the Southern Cape as there will be good opportunities for SMEs within the value chain of the gas and petroleum industry.
"Whether George will experience the same economic impact is too early to predict, but I suggest that George needs to position itself as the 'business hub' with related technology and business parks where specific competencies are developed and provided to the industry," he said.
He foresees that local, provincial and central government will need to ensure that infrastructures such as schools, housing and transport infrastructure (ports, airport and rail) can deal with the influx of people. It is also imperative that new gas industry requirements should be well planned and implemented to address the expected migration of people and increased business activities.
Memory Booysen, mayor of the Garden Route District Municipality, told the George Herald one of the advantages is that it could accelerate the expansion of the Mossel Bay harbour. Its benefits will also extend beyond the borders of the Southern Cape - to Cape Town and the Eastern Cape, for example.
Dr Willie Cilliers
Harry Hill, who was involved in the early 90s in the project phase of the then Mossgas, said if the new project materialises it will definitely lead to more job opportunities. He said 10 000 people were involved in the construction phase of Mossgas. Reacting to criticism about the possible impact on the environment, Hill said gas is a clean form of energy.
Dr Willie Cilliers, chairperson of the AHi Western Cape, said if it materialises, the find will positively change the face of the Garden Route economy. He warned that the business community and municipalities must be prepared. It could have an impact on a bigger front, for example housing and construction, and could place pressure on the existing infrastructure.
Wesgro CEO Tim Harris also welcomed the announcement, saying it would be a significant boost. "Wesgro, in line with Project Khulisa, has a portfolio manager dedicated to facilitate investment into the oil, gas and manufacturing sectors and we will be ready to assist in landing this major investment and helping to remove red tape in doing so."
Dr Dennis Farrell.
The other side
In an opinion piece on the online newspaper dailymaverick.co.za, journalist Kevin Bloom warns that it is a myth that the gas discovery will boost the economy. He argues that it will only enrich a few of the elite and that the ripple effect of economic growth does not happen in Sub-Saharan Africa when it comes to natural resources.
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