http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.02Change: -0.01
R/$ = 10.68Change: -0.06
Au 1286.35 $/ozChange: -1.15
Pt 1424.00 $/ozChange: -2.00
 
 
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|Gas|Gauteng|Generators|Industrial|Industrial Development Corporation|Pipelines|Ports|Road|Roads|Transnet|Africa|Mozambique|South Africa|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||Logistics|Products|Transport|Environmental|Power|Rail||Pipelines|
construction|durban|engineering|gauteng|johannesburg|africa-company|diesel-company|econometrix|eskom|gas-company|gauteng-company|generators|industrial|industrial-development-corporation|pipelines-company|ports|road|roads|transnet|africa|mozambique|south-africa|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
The United Arab Emirates (UAE) will provide Egypt with petroleum products worth $8.7-billion over a year starting in September, an Egyptian official told Reuters on Sunday. Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands,...
Article contains comments
The pump prices of both grades of petrol and wholesale diesel, as well as the maximum retail prices of illuminating paraffin and liquefied petroleum gas (LPG), are set to decrease from September 3, the Department of Energy said on Friday. Petrol would drop by 67c/l,...
Article contains comments
Finance Minister Nhlanhla Nene
The key to the development of South Africa lay in mineral beneficiation and industrialisation in joint development with its regional neighbours, South Africa’s new Finance Minister Nhlanhla Nene told the Centre for Education In Economics and Finance (CEEF)....
More
 
 
Latest News
Updated 6 hours ago Government, in conjunction with industry clusters had to encourage preferential procurement in the mining industry, Department of Trade and Industry (DTI) capital equipment and allied services director Tapiwa Samanga has said. In a statement issued on Monday, he...
Neil Gopal
Updated 6 hours ago The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
Updated 6 hours ago The Financial Services Board (FSB) has extended telecommunications group MTN’s broad-based black economic-empowerment trading platform MTN Zakhele’s exemption to the directive requiring over-the-counter (OTC) trading platforms to apply for a licence to operate,...
More
 
 
Recent Research Reports
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...
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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