http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.16Change: 0.04
R/$ = 11.58Change: -0.02
Au 1195.87 $/ozChange: -1.05
Pt 1197.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 23, 2008

Experts warn SA could face ‘huge’ liquid fuel shortage

Back
Listen to IDC chief economist Lumkile Mondi discussing a potential liquid fuel supply shortage
Construction|DURBAN|Engineering|Gauteng|Johannesburg|Africa|Diesel|Econometrix|Eskom|Gauteng|Generators|Industrial|Industrial Development Corporation|Pipelines|Ports|Road|Roads|Transnet|Africa|Mozambique|South Africa|Building|Electricity|Inland Network|Liquid Petroleum Product|Logistics|Petroleum Pipeline Network|Petroleum Products|Products|Transport|Environmental|Connel Ngcukana|John Dludlu|Lumkile Mondi|Power|Rail|Tony Twine|Pipelines|Diesel
Construction|Engineering||Africa|Diesel|Eskom|Generators|Industrial|Pipelines|Ports|Road|Roads|Transnet|Africa||Building|Logistics|Products|Transport|Environmental|Power|Rail||Pipelines|
construction|durban|engineering|gauteng|johannesburg|africa-company|diesel-company|econometrix|eskom|gauteng-company|generators|industrial|industrial-development-corporation|pipelines-company|ports|road|roads|transnet|africa|mozambique|south-africa|building|electricity|inland-network|liquid-petroleum-product|logistics|petroleum-pipeline-network|petroleum-products|products|transport-industry-term|environmental|connel-ngcukana|john-dludlu|lumkile-mondi|power|rail|tony-twine|pipelines|diesel
© Reuse this If the economy continues growing at 4%-plus a year then inland residents in areas like Africa's economic powerhouse, Gauteng, should start getting worried about a looming "huge" liquid fuel supply shortage, experts warned on Wednesday.

There would be massive shortages of petroleum products by as early as 2010, Industrial Development Corporation chief economist Lumkile Mondi said.

Johannesburg-based Econometrix economist Tony Twine said that, at current growth rates, "yes, we should start getting concerned" about petrol and diesel supply to the hinterland.

Should these predictions prove true, it would be yet another blow to business and residents, adding to the power-supply woes that have been plaguing the country.

Areas around South Africa have experienced intensified power cuts over the past fortnight, and Eskom, which supplies 95% of the country's power, said that it would struggle to meet demand until around 2012.

This was also increasing diesel and petrol consumption, as businesses and residents scrambled to buy generators. Twine pointed out that traffic lights without electricity were causing large-scale congestion on the roads, which increased motorists' petrol consumption.

South African Petroleum industry Association (Sapia), constituted by the country's biggest liquid fuel suppliers, however, does not believe there is any reason to panic.

CEO Connel Ngcukana told Engineering News Online that the association was aware of growing demand, and that it had put in place plans to accommodate this.

For example, it was working with State-owned logistics firm Transnet to boost throughput of petroleum products at the country's ports. Technological improvements also increased the throughput of Transnet's petroleum pipeline network.

It was also looking to optimise the rail transport of liquid petroleum product.

"Only once all these measures have been exhausted, will we put more trucks on the road," Ngcukana said. "We will be able to meet demand."

He stated that the current growth in demand was some 4,5% yearly.

However, Mondi said that inland petrol and diesel supply would be a "huge challenge". "We are worried already."

He pointed out that South Africa had been importing refined products for the past two years.

"There is a need for us to move very quickly in making sure that we have got enough storage capacity, and that we build new refining capacity, or we'll be stuck as we are in the electricity sector," Mondi asserted.

He went on to urge government to deregulate the liquid fuels and gas sector, which he argued would help mitigate supply shortages.

New pipelines



Meanwhile, Transnet was planning on constructing a new R11,2-billion multiproducts pipeline between Durban and Gauteng, which it had hoped to begin building in the first quarter this year, but had not yet submitted the environmental-impact report for the inland network to the authorities.

Spokesperson John Dludlu said in an email that this would take place during the first three months of this year.

It was unclear as to when the utility would start work on the pipeline, and it could not confirm the timeframe when Engineering News Online queried this.

“Transnet has always made it clear that, in order to meet the scheduled operation of the pipeline by 2010, we should start construction by the end of March 2008," it said in a statement. "This is on condition all the necessary regulatory processes are completed and governance approvals are obtained."

"However, we believe that all the parties involved appreciate the urgency of the matter,” the firm added.

Privately-owned Petroline, which was building a pipeline between Mozambique, Nelspruit, and Gauteng, however, was on track to complete construction by the end of 2009.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
Forces allied to Libya's conflict parties clashed with heavy weapons on Tuesday over control of the country's biggest oil ports in the east as the European Union was considering sanctions on people obstructing U.N.-brokered peace talks. The United Nations had...
South Africa will increase diesel and gas imports and sign a private sector coal-fired power plant deal as it seeks to halt chronic electricity shortages, the cabinet said on Thursday. The rand fell to its weakest level against the dollar in six years this week as a...
Independent upstream oil & gas company SacOil has appointed Sasol corporate finance VP Damian Matroos company CFO with effect from February 1, 2015, replacing acting FD Tariro Mudzimuirema, who would return to the position of FM on the same date.  Matroos holds a...
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks