18 November 2022 - NW4072
Mileham, Mr K to ask the Minister of Mineral Resources and Energy
(a) What amount of strategic fuel stock is currently held by (i) his department and/or (ii) private entities, (b) in what form is the stock held and (c) what actions have been taken and/or contemplated to ensure that a security of supply of refined petroleum products is sufficient to meet the demand of the market in the Republic as it is experiencing a perfect storm with regard to refined petroleum products, arising from inadequate port infrastructure, ongoing strike action and labour issues in the ports, failure to have any kind of strategic reserve of refined products and a shortage of refining capacity due to the closure of various refineries?
a) The Strategic Fuel Fund (SFF) until recently held (i) 10, 023 million barrels (Ten Million and 23 Thousand barrels) of strategic stocks on behalf of the state.
The current stock is down by approximately 0,3 million barrels ( 300, 000 barrels). Approximately 300 000 barrels was recently sold to Total-energies for processing at the Natref refinery. The sale followed a force majeure that had been declared by the Nigerian supplier to Total-energies.
(ii) Private entities keep commercial stock to cater for their share of the petroleum market.
b) The stock held by SFF is in crude oil form
c) SFF is implementing a strategy of developing and accessing infrastructure at import terminals and primary depots closer to the market. This will allow SFF to respond to Security of Supply disruptions and ensure availability of emergency stock of finished products. SFF has purchased a primary depot in Cape Townthat will provide open access to third parties to store their fuels. This will ensure that there is diversity of suppliers in the market place and therefore minimise supply risk.