Energy | PMG

2012-06-30

THIS FILE CAN CONTAIN UP TO 25 REPLIES.

SEARCH ON THE TOPIC/KEYWORD YOU ARE LOOKING FOR BY SELECTING CTRL + F ON YOUR KEYBOARD

Reply received: May 2012

Question: 931

Mr J F Smalle (DA) to ask the Minister of Energy:

(1) Whether funds were returned under the National Electrification Programme; if not, why not; if so, (a) which municipalities were affected and (b) what are the (i) reasons for failing to implement the programmes and (ii) further relevant details

Reply

(1) No funds were returned from the National Electrification Programme (Integrated National Electrification Programme – INEP). All funds allocated in a financial year to municipalities over the last ten years have all been disbursed in that specific financial year. This was to all municipalities with identified projects that are implementable, approved by INEP and signed delivery contracts with INEP.

a) Refer to 1 above.

b) Refer to 1 above

(2) Nil

Reply received: May 2012

Question: 835

Mr L W Greyling (ID) to ask the Minister of Energy:

(1) Whether PetroSA follows a specified tender process in the procurement of diesel for Eskom's open cycle gas turbines; if not, why not; if so, what are the relevant details;

(2) (a) how much diesel has PetroSA bought for Eskom in the past six months and (b) what was the average price of diesel during the specified period;

(3) Whether trucks are kept on permanent standby to transport diesel from Cape Town to Mossel Bay; if not, why not; if so, (a) how many trucks and (b) at what monthly cost?

REPLY

(1) Eskom volumes were supplied as a combination of imported volumes, PetroSA GTL Refinery Production and Purchase from Cape Town Refinery (Chevron). The imported volumes went through the normal PetroSA Tender process which is followed when importing finished products, feedstock and blending components. PetroSA has a Commercial Contract with Chevron in Cape Town to supply its own customer requirements in Cape Town.

(2) (a) and (b)

Table below summarizes Eskom purchases for the period November 2011 to April 2012:

Month	Imported Volume (m3)			CEF Wholesale Price (R)
Month	Cape Town	Mossel Bay	Total Volume	CEF Wholesale Price (R)
November	12,869	25,084	37,953	9.81
December	5,993	0	5,993	10.28
January	0	48,816	48,816	10.07
February	15,106	50,373	65,479	10.06
March	13,047	0	13,047	10.17
April	0	37,302	37,302	10.64
Total	47,015	161,575	208,590

Out of the 115,000 m3 that were imported between February 2012 and April 2012 approximately 51,000 m3 has not been lifted and currently stored at PetroSA GTL Refinery. CEF Wholesale price is the maximum published Wholesale Price for 500ppm Diesel.

(3) No. PetroSA contracted with a Transporter (Wardens) from November 2011 to March 2012 on an emergency Spot contract basis and not on permanent basis. The contract was for the delivery of Fuel from Fuel Firing Services (FFS) to Ankerlig Open Cycle Gas Turbine which was awarded to the Transporter who had available units at the time (other 3 Transporters did not have Trucks available). The Transporter which is based in Durban moved their Trucks to Cape Town on the awarding and acceptance of the contract.The Transporter had dedicated (standing) Trucks for this operation at NO additional costs to PetroSA.In March 2012 PetroSA went on Tender requesting quotations for a Term Contract where Transporters are requested to put dedicated Trucks as requested by Eskom. The Tender has not been awarded as it is waiting for the Due Diligence process to be finalized.

In Summary, currently PetroSA is NOT contracted for Standing Trucks and therefore NOT incurring costs as a result of Transporter placing permanent Standby Trucks at the FFS 3rd Party Storage.

(a) 4 trucks were on an emergency standby.

(b) The Transporter has quoted a standing time cost of R7,500 per day per truck which equals R30,000 per day (for 4 Trucks). This is approximately R900 000 a month.

Reply received: May 2012

QUESTION NUMBER 832
Mr J F Smalle (DA) to ask the Minister of Energy:

(1) Whether she has commissioned a study into the possible effects of sanctions against Iran on the South African fuel supply; if so, what were the (i) findings and (ii) recommendations of the study; if not, (a) why not and (b) when will such a study be conducted;

(2) Whether her department will go ahead with sanctions despite the findings of the study; if not, why not; if so, what are the relevant details? NW1007E

REPLY

(1) Cabinet has instituted an Interdepartmental Task Team to investigate, among other, the possible effects of sanctions against Iran on the South African fuel supply as well as to propose South Africa's response to the sanctions. (i) Details of the findings will be ready at the end of May 2012.

(ii) The recommendations will also be announced by Cabinet at the end of May 2012.

(2) South Africa's response to the sanctions against Iran will be announced by Cabinet at the end of May 2012.

Reply received: May 2012

QUESTION 831

Mr J F Smalle (DA) to ask the Minister of Energy:

(a) What is the (i) total and country breakdown amounts in (aa) litres and (bb) monetary value of crude oil imports in the 2011-12 financial year and (b) what is our current holding capacity? NW1006E

REPLY

(a) (i) The total crude oil imports to South Africa from April 2011 to March 2012 is (aa) about 20.4 billion litres at a cost of (bb) R 105 billion.

Country of Origin	Volumes (Litres)	Rand Value
Iran	5,678,616,463	28,390,753,681
Saudi Arabia	5,548,331,942	29,497,586,112
Angola	1,949,033,344	10,456,915,646
Nigeria	4,332,278,023	24,088,299,150
Oman	970,814,826	3,044,704,592
United Arab Emirates	539,304,651	2,698,891,050
Antigua and Barbuda	76,564,364	453,886,497
Switzerland	88,653,720	524,318,090
Ecuador	33,930,963	288,586,716
United Kingdom	89,983,721	482,366,484
Guinea	44,360,193	291,708,745
Qatar	589,996,628	3,157,006,542
USA	304,957,726	1,464,350,426
Yemen	164,662,421	850,500,681
Congo	47	166
TOTAL	20,411,489,034	105,689,877,169

(b) On average, each refinery holds crude oil stocks that equate to about 10 days of refinery operation at maximum capacity. In addition, there is 10 million barrels of crude oil kept by the Strategic Fuel Fund as strategic stocks.

Reply received: April 2012

QUESTION 797

Dr P J Rabie (DA) to ask the Minister of Energy:

1) Whether an environmental impact assessment has been conducted with regard to the proposed nuclear power station to be built near Buffelsjag in the Southern Cape; if so what were the (i) findings and (ii) recommendations of this study;

2) Whether such as assessment will be conducted; if not; why not; if so, what are the further relevant details? NW968E

Reply

1) and 2)

Yes, an environmental impact assessment (EIA) for one nuclear power station, with a maximum capacity of 4000 megawatts (MW) on one site, is being undertaken by an independent Environmental Assessment Practitioner. Three sites are studied in the EIA, namely, Bantamsklip in the Western Cape on the coast next to Pearly Beach, east of Hermanus, Duynefontein, in the Western Cape next to the existing Koeberg power station and Thyspunt in the Eastern Cape on the coast between Oyster Bay and St Francis Bay. Buffeljags is the area east and adjacent to Bantamsklip.

Twenty eight specialist studies have been completed in the EIA process, including studies related to fauna and flora, wetlands, dune morphology, transport, heritage and socio-economic activity (including the chokka and fishing industries, tourism and agriculture). A revised draft Environmental Impact Report was made available for public comment in 2011.

The Environmental Assessment Practitioner will take the comments received on the revised draft Environmental Impact Report into account in finalising the report. A few revised specialists' reports will be made available to the public in mid-2012. Thereafter, a Final Environmental Impact Report will be submitted by the Environmental Assessment Practitioner to the Department of Environmental Affairs for evaluation and a decision on an environmental authorisation.

The studies that have been conducted to date have not identified any fatal flaws on the three sites, Bantamsklip, Duynefontein and Thyspunt. With respect to the Thyspunt site, issues have been raised relating to transport, the chokka (squid) industry and debris flow. These issues are being investigated by the specialists and if there are substantive changes made in the respective specialist reports, the public will be provided with the opportunity to comment on these reports. Further work is also being undertaken by the Heritage specialists.

At this stage it is anticipated that the Final Environmental Impact Report, on the application for one nuclear power station (with a maximum capacity of 4000 megawatts (MW)) on one site, could be completed and submitted to the Department of Environmental Affairs late-2012 for a decision on the environmental authorisation.

The revised draft Environmental Impact Report, in its current form, recommends that the proposed nuclear power station, if the project receives all the required authorisations and approvals, is constructed on the Thyspunt site. However if the Thyspunt site is not approved for the first new nuclear power station, it is possible that either Bantamsklip or the Duynefontein sites may be approved.

More than one site will be required if the nuclear programme envisaged in the Integrated Resource Plan is implemented. If Bantamsklip is not used for a first new nuclear power station, it could be used for a subsequent nuclear power station if the necessary approvals are obtained. Further environmental impact assessment applications will be submitted and the required environmental impact assessment studies undertaken for any subsequent nuclear power stations.

Reply received: April 2012

QUESTION 732

Mr I.M. Ollis (DA) to ask the Minister of Energy:

Whether any officials from (a) his department and (b) any entities reporting to him were on an official visit to Bloemfontein in (i) December 2011 and (ii) January 2012; if so, in each case, what (aa) is the (aaa) name and (bbb) position of the specified official, (bb) was the (aaa) purpose and (bbb) date of such visit and (cc) was the cost of (aaa) transport, (bbb) accommodation and (ccc) other expenses?

REPLY:

With the expected participation of Heads of States and Government at the Centenary Celebrations of the African National Congress. In anticipation of their arrival a number of state agencies and departments were mandated to make preparations as part of the courtesies extended to any President/ Head of State visiting a country.

These departments include The Presidency, Department of International Relations and Cooperation, State Security Agencies and Departments, Departments of Arts and Culture, Health, Disaster Management and Public Works. These departments were mandated to ensure firstly the safety and security of the event in terms of the Public Gathering Act, provide protocol services and facilities suitable for the stature of the event. Officials from different departments were deployed to ensure the smooth running of the event.

Reply received: April 2012

QUESTION 724.

Mr J F Smalle (DA) to ask the Minister of Energy:

1) On what date does he estimate that the (a) feasibility study on the Solar Park in Upington will be completed and (b) grip upgrade will be completed to ensure that electricity generated at the Solar Park will be delivered to the national grid.

2) Whether there has been delay with this project, if not, how was this conclusion reached, if so, on what date does she estimate the first solar power from the Park will be available for the grid.

Reply

1) (a) The Department, in conjunction with the implementing Agency, CEF Pty Ltd, the Northern Cape Provincial Government and //Khara Hais Municipality, is in the process of finalizing the procurement process for the appointment of the feasibility study consultant. The bid evaluation process is complete and adjudication will take place by the end of March 2012, followed by contract negotiations. It is expected that the successful bidder will resume duty before the end of May 2012. The study period is planned to take place over 8 months.

2) Delays were encountered after the tender documents were released resulting in the delay in the finalization of the appointment of consultants. The Department of Energy is working closely with Eskom's integration project to make sure that the first solar power from the park is available by 2016/17, depending on the positive outcome of the feasibility study.

Reply received: April 2012

Question 630

Mr J F Smalle (DA) to ask the Minister of Energy:

1) Whether she has found that all municipalities adhere to the National Energy Regulator of South Africa (NERSA) licence agreement with respect to the 5% maintenance contribution from their collections; if not, which municipalities fail to uphold the terms of the license agreement;

2) Whether NERSA has levied any penalties against these municipalities; if not, why not; if so, what are the relevant details? NW721E

Reply

1) No, the municipalities do not adhere to the agreement because the funds allocated for the maintenance of infrastructure are diverted to other use.

2) In terms of the agreements between Municipalities and Nersa, there are sections which cover the penalties in case of non-compliance. These agreements are enforced by the regulator.

Reply received: April 2012

Question 629

Mr J F Smalle (DA) to ask the Minister of Energy:

(a) What total amount has been (i) allocated for the distribution to municipalities under the Municipal Electricity Distribution Infrastructure programme in the 2010-11 financial year and (ii) returned to Treasury as unspent, (b) which municipalities were affected and (c) what was the total value in respect of each municipality? NW720E

Reply

(a) (i) and (ii)

Currently there is no Municipal Electricity Infrastructure Programme in existence. A plan is underway to establish an Approach to Distribution Asset Management (ADAM) programme. As part of INEP annual allocations and amount is allocated for municipalities to build and upgrade networks specifically earmarked to supply new electrification customers. An amount of R238 mil was allocated to municipalities for this purpose in 2011/12. Due to the high demand for electrification funding, no funds were returned to National Treasury.

Reply received: March 2012

QUESTION 570

Mr J F Smalle (DA) to ask the Minister of Energy:

1) Whether municipalities have licence agreements with the National Energy Regulator of South Africa (Nersa); if not, what is the position in this regard; if so, how often are these agreements reviewed;

2) whether and (a) Government departments and (b) municipalities have transgressed any of the Nersa regulations; if so, (i) which (aa) departments and (bb) municipalities, (ii) what sections of the regulations were transgressed in the 2010-11 financial year and (c) what corrective measures has she taken in each case? NW663E

Reply

1) Yes, if the licences issued to the individual municipalities those licenses are permanent and they can be amended from time to time depending on the regulatory assessment or requirements.

2) All municipalities that distribute electricity have to obtain a license from the regulator. In the terms and conditions of the license, there are provisions that deal with transgression. The Department of Energy is mandated to develop and implement policies and NERSA is an independent body mandated to regulate the industry and implement the Departmental policies.NERSA issues periodic reports annually to the Minster of Energy, as per normal procedures regarding audits and intervention.

According to NERSA's annual report for 2010/11 "A total of 179 municipal tariff applications were received, analysed, reviewed and approved, with 11 of these requesting a review of the initial decision. A total of 10 licensees were not accounted because applications were not received, of which 2 are private distributors who only supply electricity for own use." The Department has regular engagements with NERSA to improve any abnormalities in the regulations and policies.

Reply received: March 2012

QUESTION 566

556. Mr J F Smalle (DA) to ask the Minister of Energy:

1) What is the price for each unit of electricity charged by Eskom to (a) local municipalities, (b) businesses, (c) residential properties and (d) pre-paid equitable holders for each municipality;

2) whether all municipalities are in line with the regulations of the National Energy Regulator of SA (Nersa); if not, why not; if so, what are the relevant details? NW718E

Reply

1) Reflected below are average prices for local municipalities and businesses, whilst the exact price is dependent on the location and voltage levels. For residential and pre-paid customers however, the IBT rates are applicable irrespective of location.

(a) Local municipalities – For the period 1 April 2010 to 31 March 2011 the average price charged to redistributors was 39.53 c / kWh (Ex VAT)

(b) Business – For the period 1 April 2010 to 31 March 2011 the average price charged for commercial customers (business) was 52.63 c / kWh (Ex VAT)

(c) Residential customers – Eskom charges residential customers in terms of the inclining block tariffs (IBT) as approved be NERSA.

(d) Pre-paid equitable holders for each municipality - Eskom charges pre-paid residential customers in terms of the inclining block tariffs (IBT) as approved be NERSA. Eskom cannot comment on prices for pre-paid equitable holders charged by municipalities

Table1: IBT rates for the period 1 April 2011 to 31 March 2012

2) Eskom cannot comment whether the municipalities are in line with the regulations of NERSA.

Reply received: March 2012

QUESTION 515

Mr J F Smalle (DA) to ask the Minister of Energy:

2) Whether NERSA has levied any penalties against these municipalities; if not, why not; if so, what are the relevant details? NW721E

Reply

1) No, the municipalities do not adhere to the agreement because the funds allocated for the maintenance of infrastructure are diverted to other use.

2) In terms of the agreements between Municipalities and Nersa, there are sections which cover the penalties in case of non-compliance. These agreements are enforced by the regulator.

Reply received: March 2012

QUESTION 511

Mr J F Smalle (DA) to ask the Minister of Energy:

a) What total amount of money was distributed to municipalities in terms of the Municipal Electricity Distribution Infrastructure for the 2010-11 financial year; and

b) (i) What amount was returned as unspent to National Treasury, (ii) which municipalities were affected and (iii) what was the value of the unreturned money? NW586E

Reply

a) In the 2010/11 financial year, the allocations made to the municipalities were R 341, 623 million to construct bulk infrastructure (e.g. substations, MV Lines and Upgrading of electricity infrastructure) under the INEP programme.

b) (i) No funds were returned to National Treasury on 2010/11 financial year.

(ii) None

(iii) None

Reply received: April 2012

Question: 484

Mr N J van den Berg (DA) to ask the Minister of Energy:

Whether she met with the internal audit committee in the (a) 2010-11 and (b) 2011-12 financial years; if not, why not; if so, (i) on which dates did they meet and (ii) what are the further relevant details? NW633E

REPLY

(a) The Minister did not meet with the audit committee (b) during the 2011 and 2012 financial years. The Director General and the Auditor General are members of the Audit Committee and on a periodic basis the Director General ensures that pertinent issues arising from the Audit Committee are brought to the attention of the Minister. (i) Regular meetings between the Auditor General and the Minister which covers amongst others internal control are convened;

(b) (ii) The Director General, senior members of management who are also standing invitees of the Audit Committee meetings and internal audit also uses these meetings as a forum to discuss any audit and internal control matters that the Audit Committee have raised in their meetings.

Reply received: March 2012

QUESTION 429

429. Mr J F Smalle (DA) to ask the Minister of Energy:

1) Whether any discussions are taking place between (a) BHP Billiton, (b) Eskom and (c) her department to effect a reduction in the 1700MW to 2000MW electricity usage used by the aluminum plant to identify a significant electricity saving; if not, why not; if so, what are the relevant details;

2) What (a) current electricity tariffs are charged at these two mines and and (b) are the terms for determining these tariffs? NW573E

Reply

(1) (a) and (b)

Yes, Eskom continues to explore various options for demand reduction with all large customers. In addition Eskom relies on the electricity supply agreement between Eskom and BHP Billiton which makes provision for the temporary interruption of power to BHP Billiton's aluminium smelters subject to certain conditions.

(2) (a) and (b)

Information relating to customers is governed by commercial legal agreements and can therefore not be disclosed publicly. Eskom is therefore obliged to treat customer information in the strictest confidence and is therefore not in a position to disclose this information. As previously stated in PQ 105, although the South Gauteng High Court took a decision in August 2011 in favour of disclosure of the BHP Billiton tariffs, BHP Billiton has appealed the decision.

Reply received: March 2012

QUESTION 361

Parliamentary Questions

Mr JF Smalle (DA) to ask the Minister of Energy:

1) Whether the Petroleum Oil end Gas Corporation of South Africa Pty Ltd (Petro SA) loaned any money to a certain company (name furnished); if not, how was. this conclusion reached; if so (a) what was the total sum of the loan, (b) what guarantees were provided and (c) (i) when and (ii) by whom was the loan approved;

2) What was the monetary value of the guarantees;

3) Whether Petro SA had the loan written off; if not, how was this conclusion reached; if so, (a) why, (b) who approved the decision to write off the loan and (c) what total amount was written off;

4) Who (a) we& the directors of the said company at the time that the loan agreement was signed and (b) who are the current directors?

Responses:

1) Yes, In April 2004 PetroSA purchased a 40% stake in an oil-producing entity (OML114) in Nigeria through a wholly owned subsidiary (Brass Exploration Unlimited - BEU).

a. As part of the purchase consideration BEU had a loan on its books amounting to $35 251 730.60, which PetroSA financed from its own cash resources. The loan was adopted by PetroSA and was at an interest rate of Libor+14%. The wholly owned subsidiary (BEU) was commercially viable and has since fully repaid this loan, together with interest.

2) There were no guarantees provided in respect of this loan. The acquisition of BEU went through the normal approval processes, including the PetroSA Board of Directors, South African Reserve Bank and the Minister of Energy. These approvals were duly granted. The Treasury Department was notified in terms of the Public Finance Management Act.

3) The loan was fully repaid on the 10'~of June 2009, together with interest. There was no part of the loan written off

4) At the time of the purchase, the directors of the acquired company were Mr A. Omar and Ms M.N. Ngobeni (all PetroSA employees). The company was disposed of in December 2010 and the directors then were Mr NG Nika (PetroSA executive director), Prof. BDEL Figaji (PetroSA non-executive director) and Ms M.N. Phohlele (PetroSA employee, formerly Ms M.N. Ngobeni)

Reply received: March 2012

QUESTION 358

Mr. JF Smalle (DA) to ask the Minister of Energy:

(a) What was the total budgeted amount for the (i) maintenance and (ii) upgrade of the electricity infrastructure for the financial year 2011-12 and (b) how does it compare with the requirements for each municipality?

REPLY

Please find attached REPLY

Reply received: March 2012

QUESTION 357

Mr J F Smalle (DA) to ask the Minister of Energy:

What (a) is the percentage loss of electricity for each municipality on their grid system and (b) are the reasons for the loss in each case? NW443E

Reply

The Department of Energy received the question, reviewed its contents against its mandate and has determined that that most appropriate respondent should be the Department of Cooperative Governance and Traditional Affairs.

Reply received: March 2012

QUESTION 146

Adv A. de W Alberts (VF Plus) asks the Minister of Energy:

(1) Whether her department has introduced a fuel subsidy for the taxi industry; if so, (a) what is the reason for this subsidy and (b) what does the subsidy entail; if not,

(2) whether she has been notified that petrol stations are giving a specific discount to taxis; if so,

(3) whether she and her department were involved in determining this discount; if not,

(4) whether she intends to investigate this matter; if not, why not; if so, what are the relevant details? NW161E

Reply:

(1) No; (a) and (b) not applicable,

(2) No,

(3) No,

(4) No. My Department is, however, aware that some service station operators do offer discounts on products other than petrol sold by those service station operators. The discounts on these products fall outside the provisions of the Petroleum Products Amendment Act, 2003 (Act No. 58 of 2003). There are no direct subsidies or discounts applicable to the fixed petrol prices on petrol sales by service station operators to taxi operators in terms of the Petroleum Products Act. The Department has a Petroleum Compliance Monitoring and Enforcement Unit which deals with contraventions to the law governing the petroleum sector.

A formal complaint with all the requisite information must be lodged with the Controller of Petroleum Products at the Department.

Reply received: February 2012

QUESTION NUMBER 105

Mr P van Dalen (DA) to ask the Minister of Energy:

Whether, with reference to the reply to question 1098 on 2 August 2011, and the recent ruling by the Gauteng South High Court in favour of disclosing information on Eskom's secret pricing deals with the global mining giant BHP Billiton, she will disclose Eskom's pricing structure for foreign sales of electricity; if not, why not; if so, what are the relevant details with regard to the (a) country, (b) entity to which electricity is supplied and (c) pricing structure applicable in each case? NW114E

Reply

The Department of Energy received the question, reviewed its contents against its mandate and has determined that that most appropriate respondent should be the Department of Public Enterprise.

Reply received: February 2012

QUESTION NUMBER 11

Mr L W Greyling (ID) to ask the Minister of Energy:

(1) Whether all crude oil refineries are functioning at full capacity; if not, why not; if so, at what capacity levels are they functioning;

(2) whether her department has identified the need for infrastructure expansion programmes within the oil refinery industry; if not, why not; if so, what are the relevant details;

(3) whether she intends entering into any public-private partnerships for any refinery infrastructure expansion programmes; if not, why not; if so, what are the relevant details? NW12E

1) On average all South African refineries are producing below 80% of their design / nameplate capacity. I have directed that an Audit of the South African Refineries be conducted to ascertain the real status of these refineries as far as it concerns their production capacities and capabilities.

(The Audit is currently underway and will be concluded in this calendar year).

2) The Department of Energy is currently developing a 20 Year Liquid Fuels Infrastructure Roadmap to, among other things, ascertain / quantify the need for infrastructure expansion programmes within the oil refinery industry.

3) The National Oil Company, PetroSA, is involved in business engagements with private companies in this regard. Honourable members are aware of PetroSA's Mthombo Refinery Project, which also involves investigating potential public-private partnerships to improve the country's refining capacity.

Reply received: February 2012

QUESTION 10

Mr L W Greyling (ID) to ask the Minister of Energy:

Whether she has been informed that one of the crude oil pumps at the Durban harbour is in disrepair; if not, what is the position in this regard; if so, (a) what are the reasons why the pump fell into disrepair, (b) when will the pump be fully operational and (c) what measures has she implemented to deal with this issue? NW11E

Reply

The Department has not been informed of any crude oil pump at the Durban harbour that is in disrepair. The discharge of crude oil into the Durban area is currently conducted via an offshore Single Buoy Mooring (SBM), crude oil is therefore no longer discharged via any of the berths at the harbour. With respect to the SBM, the Department is aware of the damage that was incurred on a connector to one of the subsea hoses earlier this year, but this was subsequently replaced.

Reply received: February 2012

QUESTION 09

Mr L W Greyling (ID) to ask the Minister of Energy:

(1) Whether she has identified any measures to deal with the recurring petrol shortages within the inland provinces; if not, why not; if so, what measures;

(2) whether her department has identified any legislative proposals to (a) regulate the (i) storage and (ii) supply of petrol and (b) create emergency (i) crude and (ii) refined oil; if not, why not, in each case; if so, what are the relevant details in each case;

(3) whether her department has identified the need for petrol storage infrastructure expansion programmes in the inland provinces; if not, why not; if so, what are the relevant details;

(4) whether she intends entering into any Public Private Partnerships with regard to fuel storage and distribution infrastructure expansion programmes; if not, why not; if so, what are the relevant details? NW10E

REPLY

1) The supply of fuel to the inland region is highly constrained and the Department is very concerned about the recent fuel shortages experienced in the South African market, particularly in the inland region. Being aware of the precarious liquid fuels supply situation in the country, the Department supported SAPIA to obtain an exemption from the Competition Commission to, among other things, collectively hold meetings with the Department to effectively manage the supply situation. The Department holds frequent meetings with supply managers of the various oil companies and also holds the more operational LPT (Logistics Planning Team) teleconferences / meetings on a weekly basis or more frequently as necessary with the supply specialists from the oil companies to discuss challenges in the supply chain and propose solutions. Oil companies also submit planned refinery shutdown schedules and concomitant contingency plans to the Department for monitoring of plans to minimise any negative impact on supply.

(2)(a)(i) The Department, through the National Energy Regulator of South Africa (NERSA), already regulates the construction and access to storage facilities through the Petroleum Pipelines Act, 2003 (Act No. 60, 2003); and

(2)(a)(ii) The regulation of the various aspects of the petroleum products supply chain, inclusive of the supply of crude oil and refined products, is premised on the provisions of the Petroleum Products Act, 1977 (Act No. 120 of 1977), as amended.

(2)(b)(i)(ii) A draft Strategic Stocks Policy, which amongst other factors will specify the quantities of strategic (national emergency) crude oil and refined product stocks to be maintained is currently being finalised in the Department. Once approved relevant regulations will be developed which could then be used to regulate the holding of emergency stocks for national purposes.

3) Qualitatively it has been determined that there is a requirement for petroleum products (including petrol) storage infrastructure in the inland region. In determining the extent of such a requirement, the full capacity and capability of the current and future supply chain and logistics infrastructure needs to be assessed and quantified such that all viable options are weighed out and the best options are put forward. The Department of Energy is currently developing a 20-Year Liquid Fuels Infrastructure Roadmap, which among other factors, will ascertain and quantify such a need.

4) The Department has created the necessary regulatory framework to encourage public and private companies to invest in infrastructure. Various players (both public and private players) are responsible for the development of infrastructure for the storage and distribution of fuel. Conditions for the licensing of the various elements are legislated through the Petroleum Products Act, 1977 (Act No. 120 of 1977) and the Petroleum Pipelines Act, 2003 (Act No 60 of 2003), both of which are regulated by NERSA.

2012-06-30

What's wrong with this page?