http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

MPs unconvinced about gas industry

Back
Port|CoAL|Eskom|Electricity|Energy|Liquid Petroleum Gas|Safer And Cleaner Energy Source|Dipuo Peters|Infrastructure|Jabulani Ndlovu|Sisa Njikelana
Port|CoAL|Eskom|Energy||Infrastructure|
port|coal|eskom|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
Updated 1 hour 11 minutes ago The majority of the 41 signatory countries to the Organisation for Economic Cooperation and Development’s (OECD’s) Anti-Bribery Convention, adopted in 1997, have failed to clamp down on foreign bribery activities. Fifteen years after its implementation, only four...
President Jacob Zuma
Updated 1 hour 46 minutes ago President Jacob Zuma on Thursday revealed the composition of the new team of Ministers and business proponents set to lead the Presidential Black Economic Empowerment Advisory Council. Trade and Industry Minister Dr Rob Davies, Minister in the Presidency responsible...
Updated 1 hour 48 minutes ago Cabinet on Wednesday approved the retention of South African Airways (SAA) chairperson Duduzile Myeni and nonexecutive director Yakhe Kwinana, while also approving the appointment of Dr John Tambi and Anthony Dixon as board members at the troubled national carrier....
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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