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Increase in LPG demand leads to surge in disreputable dealers

1st February 2013

By: Sashnee Moodley

Senior Deputy Editor Polity and Multimedia

  

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Consumers are becoming increasingly aware of the benefits of using liquefied petroleum gas (LPG), leading to some individuals and companies entering the LPG supply market and offering consumers unregulated and substandard services, states Liquefied Petroleum Gas Safety Association of Southern Africa communications manager Kevin Robertson.

He says the association has noticed several individuals and companies participating in the market with little regard for existing regulations and standards.

Tight electricity supply and rising electricity costs are prompting consumers to seek alter-native energy sources, notes Robertson.

“As a result, there has been an increase in the illegal filling and use of cylinders and gas installations.

“These individuals legitimately buy LPG from a refinery and then distribute it; however, as they have not invested in the infrastructure to undertake distribution, such as a sufficient stock of their own cylinders, they use cylin-ders belonging to other companies. “They fill these cylinders, which are branded with the owner company’s logo and supply the unsuspecting consumer,” Robertson explains.

He says these gas cylinders are often over-filled as incorrect equipment is used and untrained persons undertake operations.

This puts consumers at risk, as an overfilled cylinder could be hazardous if exposed to excessive heat. Robertson says a cylinder should be filled to 80% of its capacity, as this allows expansion of the gas in the cylinder.

The underfilling of cylinders is another concern. Many consumers believe they are being offered good deals at low prices, but they are actually being deceived into buying underfilled cylinders.

Robertson believes that a properly designed and implemented licensing regime would help counter any illegal activities in the LPG market, as all that is currently needed in terms of buying bulk LPG from a refinery is a wholesale licence.

“If refineries and distributors were pro-hibited from selling LPG to anyone other than a company, or an individual who has a licence to buy LPG for anything other than his or her own use, illegal operators would not be able to access the product in the first place,” he says.

Meanwhile, Robertson warns that empty cylinders that are not thoroughly inspected to ensure their safety before being re-used, could lead to hazardous accidents.

He adds that only properly trained per-sons should install LPG appliances, as they understand the properties of LPG and are knowledgeable about the regulations, standards and by-laws relating to the instal-lation of LPG equipment. This is also a requirement through the Pressure Equipment Regulations (2009) under Section 44 of the Occupational Health and Safety Act of 1993.


He highlights that trained and qualified installers are registered with South African Qualification and Certification Committee for Gas (SAQCC Gas) and are issued identi- fication cards that display a unique SAQCC Gas number, the installer’s level of expertise, the date of expiry of the licence and a photo of the installer.

LPG vs Electricity
Meanwhile, when compared with electricity, Robertson says LPG is fast, safe, economical and efficient when used in the correct applications, such as cooking and water and space heating.

He asserts that it could become a primary energy source for South Africans as it is used extensively and successfully throughout the world.

Robertson says South Africa does not need to delve into expensive and extensive research, as the country is already using LPG and the appliances, equipment, knowledge and expertise required to install appliances are immediately available.

However, he lists the challenges of adopt-ing LPG as a primary energy source as main-taining a properly regulated industry with regard to training, licensing and enforcement and ensuring a sufficient and sustainable supply of product.

LPG should be encouraged as a safe, effi- cient and affordable alternative energy source, he states.

To do this, government support for the licensing and promotion of LPG and public–private partnerships that will ensure the sustainable supply and storage of LPG are needed.

Automotive Fuel
LPG is also becoming increasingly popu-lar as automotive fuel in many countries worldwide.

Robertson says reduced maintenance costs and considerably fewer emissions make it sought after.

According to the World LPG Association, LPG is by far the most widely used and accepted alternative automotive fuel being used in the world. It has outperformed petrol, diesel and other alternative fuels in the majority of studies conducted worldwide, during which environmental performance was compared.

Robertson says such a market could be developed in South Africa, with the distinct possibility of developing local skills with correct planning and communication, as South Africa has access to information and expertise from various countries that have developed their autogas industries and which have been operating successfully and safely for many years.

LPG use in the South African automotive industry has already started.

The Automotive Industry Development Centre (AIDC) ran a project between February and October 2012 to equip more than 300 Gauteng minibus taxis with LPG conversion kits, enabling the taxis to dually operate on LPG or petrol.

The AIDC has also issued an expression of interest for companies to locally manufacture the LPG conversion kits and related components.

Local manufacturing would boost employ- ment and bring down the cost of the conver-sion kits, which are currently sourced from Poland-based DT-Gas Systems, junior project manager Renny Malungane told Engineering News in October last year.

“To have the kits or components manu-factured locally could drive down their price and increase demand locally,” he said.

Malungane added that the AIDC would work with the Department of Trade and Industry and the Industrial Development Corporation to provide funding for local manufacturers that were interested, but revealed that the AIDC did not have the funds to finance the infrastructure and skills required.

However, Robertson says South Africa has sufficient local labour that could be equipped with the requisite skills.

“Correct training is essential and available. The market is not going to grow overnight, but with correct planning, it could be devel-oped over a period of time,” he says.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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