http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.73Change: 0.26
R/$ = 13.14Change: 0.02
Au 1124.02 $/ozChange: -1.83
Pt 999.00 $/ozChange: 17.50
 
 
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)
 
 
 
 
 
 
 
 
Other Energy News
Updated 4 hours ago South Africa’s successful Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has not only brought in hundreds of billions of rands in economic infrastructure investment but has also seemingly become the fulcrum of the country’s proposed...
Updated 5 hours ago The Competition Commission has asked for further submissions and information in respect of concerns raised as part of the commission’s inquiry into the liquefied petroleum gas (LPG) sector. The commission launched in the inquiry in September 2014, with the aim of...
Updated 5 hours ago Engineering and construction group Murray & Roberts (M&R) says it has no intention of shifting its strategy away from the international natural resources market, notwithstanding the prevailing weak climate for commodities and a bleak immediate outlook. Speaking to...
Article contains comments
More
 
 
Latest News
Updated 4 hours ago South African water utility Rand Water’s Sedibeng Regional Sanitation Scheme will be undergoing major upgrades to unlock residential and business developments in the Vaal area, as well as parts of the south of Johannesburg, the Gauteng provincial Department of Human...
Updated 4 hours ago State-owned entity Land Bank has posted a 9.3% drop in profit from continuing operations year-on-year, citing a decline to R352.5-million in the 2015 financial year from R388.6-million in the 2014 period. The bank’s net cash position improved from R1.47-billion to...
Updated 4 hours ago Power lines connecting the east African states of Tanzania, Uganda, Rwanda, Kenya and Ethiopia are expected to be completed within the next three years, helping improve supplies and power trading, a senior Kenyan official said on Thursday. Power shortages are common...
More
 
 
Recent Research Reports
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.
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.
 
 
 
 
 
This Week's Magazine
Parliament’s Portfolio Committee on Public Enterprises has welcomed the turnaround strategy of State-owned regional carrier South African Express (SAX). This was reported in a media statement issued by the Committee, following a briefing it received from the airline...
KARSTEN WELLNER The acquisition was aligned with the Ascendis international growth strategy of diversifying across different markets
Health and care brands group Ascendis Health last week announced its first international acquisition – an initial 49% stake in Spanish pharmaceutical group Farmalider for R210-million.
CYRIL RAMAPHOSA Attention needs to be paid to basic and secondary education, as well as higher education, vocational training and adult education
Deputy President Cyril Ramaphosa chaired a Human Resources Development Council (HRDC) meeting at the Pick n Pay regional offices in Johannesburg earlier this month, where it was revealed that baker was the third scarcest occupation in South Africa.
BRETT WALLACE Festo customers can physically test any electric drive applications in a controlled environment
The applications centre at multinational industrial automation company Festo’s Isando offices, in Ekurhuleni, will test and prove concepts and systems for clients to ensure that the systems deliver the intended value once installed, says Festo South Africa MD Brett...
Several Chinese companies plan to invest in infrastructure projects in Malawi, the Southern African country's investment and trade promotion body has revealed. Malawi Investment and Trade Centre CEO Clement Kumbemba says the prospective investors include China...
 
 
 
 
 
 
 
 
 
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