http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

MPs unconvinced about gas industry

Back
Port|CoAL|Eskom|Gas|Petroleum|Storage|Electricity|Energy|Liquid Petroleum Gas|Safer And Cleaner Energy Source|Dipuo Peters|Infrastructure|Jabulani Ndlovu|Sisa Njikelana
Port|CoAL|Eskom|Gas|Petroleum|Storage|Energy||Infrastructure|
port|coal|eskom|gas|petroleum|storage|electricity|energy|liquid-petroleum-gas|safer-and-cleaner-energy-source|dipuo-peters|infrastructure|jabulani-ndlovu|sisa-njikelana



MPs expressed disappointment on Friday at the energy department's progress in increasing the market share of liquid petroleum gas (LPG).

The department briefed MPs on an option for LPG expansion, which has yet to be approved by Energy Minister Dipuo Peters and her director general.

Parliament's energy committee chairman Sisa Njikelana said that by now the department should have had a full strategy, approved by Cabinet.

"We are far from satisfied on progress. At least by now, there should have been a first draft of a strategy, so the burden on electricity could be alleviated," Njikelana said.

The department's director for Petroleum and Petroleum Infrastructure Policy Jabulani Ndlovu gave MPs a broad overview of what interventions were being mooted to increase the supply of LPG, largely seen as a safer and cleaner energy source for cooking and heating.

This would largely need subsidies from government as the costs of LPG were still too high, particularly for the country's poor.

"Switching people from using other sources of energy such as wood, charcoal, electricity and paraffin to LPG would require funding in terms of subsidies," Ndlovu said.

The cost of subsidies was estimated to be about R630 million, based on the current pricing of both gas cylinders and stoves.

Ndlovu told MPs that low, middle and upper income groups should be subsidised.

"Our approach is that we want to expand the usage of LPG, irrespective of upper or lower income groups. Subsidies for higher income groups will, however, be lower," he said.

The demand for LPG has grown since Eskom's rolling blackouts in 2008, but has slowed since then because of the cost of gas.

"The higher price of LPG than electricity has resulted in the majority of poorer households switching to fuels such as coal, paraffin and wood," said Ndlovu.

There were still several constraints to developing the LPG market. These included storage and infrastructure availability, as well as behaviour like the hoarding of cylinders.

Ndlovu said there were a few new developments which could help.

"There is a company that is developing an LPG import facility at the port of Saldanha. Also there are a number of other companies which are constructing storage infrastructure for LPG," he said.

Edited by: Sapa
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 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.
Real Economy Insight: Electricity 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.
Real Economy Insight: Road and Rail 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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96