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)
Creamer Media Senior Deputy Editor Online
Other Gas News
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...