Cleaner Fuels: briefing by Department

Meeting report

MINERALS AND ENERGY PORTFOLIO COMMITTEE
13 December 2005
CLEANER FUELS: BRIEFING BY DEPARTMENT

Chairperson: Mr E Mthethwa (ANC)

Documents handed out:
Department of Minerals and Energy (DME) presentation on Cleaner Fuels
Precious Metals Bill [B30C-2005]
NCOP proposed amendments to the Precious Metals Amendment Bill
[please email [email protected] for document]

Please note this meeting did not appear on Parliament's Order Paper and thus was not monitored by PMG. The summary was provided by the Committee Secretary.

SUMMARY
Mr Nhlanhla Gumede, Chief Director: Hydrocarbons, presented a briefing on cleaner fuels (see document).

Mr Colin McClelland, Director of Sapia – South African Petrol Industry Association, explained that the shortage problem lay on the side of the refining industry. The upgrading of refineries to meet the 2006 specifications for cleaner, unleaded fuel meant the construction of R10 billion in new plant equipment. Refineries had under-estimated the time frames for the conversion of production of leaded to unleaded petrol and low-sulphur diesel. The process had not been as smooth as expected. They had not factored in the shutdown necessary to get the new system up and running and this had led to unexpected reductions in refining production.

The Committee adopted the NCOP proposed amendments to the Precious Metals Amendment Bill.