Feb 03, 2012
Supplier working hard to secure contractsBack
© Reuse this
Egoli Gas MD Bheki Vilakazi says more companies are using gas to generate their own power and reduce their reliance on State-owned power utility Eskom, owing to electricity supply constraints.
Power is generated through cogeneration, or through trigeneration.
Vilakazi says Egoli Gas serves six market segments. The first of these is the domestic residential market that makes up 80% of its customer base and provides about 20% of its income.
The second sector is multi- dwelling clients such as townhouse complexes and household residential apartment buildings. In these markets, the gas supplied is used for applications such as space heating, the heating of water from geysers and for cooking.
The third sector is central water clients that use central gas-fired boilers, while the fourth is the commercial sector, made up of customers such as hotels, restaurants and take-away food outlets.
The other two sectors, small-scale industrial customers which use 300 GJ or less a month, and large industrial customers which use more than 300 GJ a month, contribute some 80% of the company’s sales volume and its income.
Egoli Gas has a number of ongoing multimillion-rand contracts with companies such as financial services provider Absa and cellular network provider MTN.
The company’s biggest con- tract to date has been a three-year, multimillion-rand con- tract with the Charlotte Maxeke Johannesburg Academic Hos-pital, which was signed in 2008. The company is negotiating with the hospital to have the contract renewed.
Meanwhile, Vilakazi says the company is looking at expanding its business this year.
As part of its network extension plans, there is a possibility of building a gas plant in Sandton to serve the corporate market in that area.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Energy News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.