http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.00
R/$ = 11.62Change: 0.02
Au 1197.76 $/ozChange: 23.35
Pt 1213.50 $/ozChange: 22.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 22, 2012

SA should take ‘proactive’ steps to deal with refined-fuel deficit

Back
DURBAN|Johannesburg|Port|SECURITY|Africa|Consulting|Industrial|PetroSA|PFC Energy|PROJECT|Security|Africa|Europe|Botswana|India|Kenya|Lesotho|Namibia|Nigeria|Senegal|South Africa|Swaziland|ZAR|Security|Crude-oil Refinery Project|Energy|Logistics|Oil|Oil And Gas|Oil And Gas Industry|Oil Product Pipeline|Product|Security|Eastern Cape|Infrastructure|Marc Seris|Security|Eastern Cape|Middle East|Southern Africa
Port|SECURITY|Africa|Consulting|Industrial|PROJECT|Security|Africa||Kenya|||Security|Energy|Logistics|Oil And Gas|Security||Infrastructure|Security||
durban|johannesburg|port|security|africa-company|consulting-company|industrial|petrosa|pfc-energy|project|security-company|africa|europe|botswana|india|kenya|lesotho|namibia|nigeria|senegal|south-africa|swaziland|zar|security-facility|crude-oil-refinery-project-industry-term|energy|logistics|oil|oil-and-gas|oil-and-gas-industry|oil-product-pipeline|product|security-industry-term|eastern-cape|infrastructure|marc-seris|security-person|eastern-cape-province-or-state|middle-east|southern-africa-region
© Reuse this



South Africa should take proactive steps to address the current national and regional deficits in refined liquid fuels, which had the potential to undermine growth in the territory, PFC Energy senior director Marc Seris said on Monday.

PFC Energy is a global consulting firm specialising in the oil and gas industry and is currently an adviser to South Africa’s national oil company PetroSA, which is promoting the concept of a new domestic refinery.

Speaking in Johannesburg, Seris said demand in the Botswana, Lesotho, Namibia, Swaziland and South Africa (BLNS-RSA) supply zone could gradually increase to about 870 000 bl/d by 2030.

Such growth could weigh on South Africa’s external balance of payments, with imports arising mainly from the Middle East, India and Europe. Increased reliance on imports from outside the region could also expose consumers to greater risk of supply disruptions.

Seris argued that Southern Africa had the market potential to support a new large-scale refinery, or an expansion of existing facilities.

The statement came amid an increasingly assertive move by PetroSA to market the development of Project Mthombo, a crude-oil refinery project earmarked for development in the Coega industrial development zone, in the Eastern Cape.

The State-owned company believes the multibillion-rand 360 000 bbl/d project would contribute to the security of liquid-fuels supplies in the Southern African Development Community and usher in a cleaner-fuels era for the region. However, there is currently no distribution infrastructure linking Coega to the main hinterland markets.

“An oil product pipeline from the refinery to the Gauteng region would provide an alternative route to main demand market and would ensure supply reliability,” Seris argued.

He added that, even with the introduction of the first train, in 2020, and the second by 2025, the project would be insufficient to erase the anticipated regional product shortfall.

“A 360 000 bl/d refinery in Coega would create a short-lived surplus of middle-distillates – the BLNS-RSA region would remain short in gasoline … under this scenario, demand in the BLNS-RSA supply zone would outstrip supply from the middle of the 2020 to 2030 decade.”

Seris indicated that refinery owners in South Africa currently lacked an appetite for refining investments, but suggested that the country could further alleviate its oil product deficit by debottlenecking its existing logistics and integrating its supply chain internationally.

South Africa’s domestic refining industry was currently in a vulnerable state, as most refineries were old and lacked flexibility, while the Port of Durban was congested.

“With upcoming change in fuel specs, government needs to decide which of these options is the better route,” he argued, adding that the existing refineries required material investment to reduce operational costs and improve reliability.

Other refineries in the sub-Saharan African region also lacked scale and complexity.

The country’s fuel sector would also require significant investments to meet the emerging Clean Fuels 2 specification, with the South African Petroleum Industry Association estimating a need for industry-wide investments of about R35-billion to R40-billion.

“Getting South Africa supplied with large volumes of 10 ppm [parts per million] motor fuels could be problematic, because only a few refineries outside of Europe can make these specifications,” Seris pointed out.

Between 2004 and 2012, major oil and gas companies have been stampeding out of Africa, today only remaining in the Southern African region and Nigeria.

Seris explained that this was owing to oil companies having downsized their downstream portfolios, reducing their exposure to refining and exiting nonstrategic regions or countries.

“These stakes in African refineries have all be purchased by State interests, except for Kenya, Côte d'Ivoire and Senegal,” he noted.

He said renewed government participation in the oil and gas sector reflected rising energy nationalism.

“Moving forward, African national oil companies will gradually gain more operational and strategic autonomy from the State to make higher-level decisions."

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
anzania's attorney general resigned late on Tuesday, becoming the first political casualty in an energy corruption scandal in the east African country that has led Western donors to delay aid and weakened the currency. The resignation followed a vote in parliament...
Forces allied to Libya's conflict parties clashed with heavy weapons on Tuesday over control of the country's biggest oil ports in the east as the European Union was considering sanctions on people obstructing U.N.-brokered peace talks. The United Nations had...
South Africa will increase diesel and gas imports and sign a private sector coal-fired power plant deal as it seeks to halt chronic electricity shortages, the cabinet said on Thursday. The rand fell to its weakest level against the dollar in six years this week as a...
More
 
 
Latest News
A consortium of nine banks has restructured the financing for the Gebze-Izmir highway project in Turkey to $5-billion, while the maturity was extended to 15 years from a previous seven, banking sources said. The consortium consists of Deutsche Bank and eight Turkish...
Germany's HeidelbergCement has clinched a deal to sell its Hanson Building Products business to private equity firm Lone Star Funds for $1.4-billion to reduce its debt. Up to $100-million of the takeover price will be payable in 2016, depending on the 2015...
Global mining equipment and services provider Sandvik Mining has recently provided one of Africa’s largest contract miners Aveng Moolmans with five diesel-powered drill rigs for use on the Nkomati nickel mine, in the northeast of South Africa, near Machadodorp in...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
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