Mar 06, 2012
SADC energy infrastructure integration could lower end-user costsBack
Cape Town|Africa|Diesel|Exploration|Petroleum|PROJECT|Resources|Road|Sustainable|Africa|Angola|Mozambique|Namibia|South Africa|Tanzania|Energy|Energy Infrastructure|Gas Finds|Gas Reserves|Oil|Petroleum Products|Pipeline Network|Products|Sustainable Gas Market|Infrastructure|Rail|Sub-Saharan Africa|Diesel
© Reuse this
“It may be more effective to link the region’s pipeline network for gas, as well as petroleum products. These may be more effective interventions than costly investment in road transport tankers and rail road cars,” she said at the 6th Africa Economic Forum under way in Cape Town.
Peters said that Angola currently had the largest gas reserves in the region, with approximately 271.8-billion cubic meters followed by Mozambique (127.4-billion cubic meters), Namibia (62.3-billion cubic meters), Tanzania (6.5-billion cubic meters) and South Africa (27-million cubic meters). However, with new gas finds that were reported in 2011, Mozambique was likely to move to the top of this list in the near future. Peter said that these reserves were a positive sign for regional trade and development, and provided a further strategic opportunity to lift the fortunes of the region and the continent.
“We should be asking ourselves and spare some thought on how these resources can be used to best serve sub-Saharan Africa and the entire continent first. As South Africa, with a clear intent of creating a sustainable gas market in our country, we will continue to engage with our sister countries to find the best way of utilising these resources, whilst making the necessary returns on investment.”
Peters added that she believed that the SADC governments should also focus on strengthening their own national oil companies in order to clearly define their position in directing the exploration and use of natural resources in their own countries.
According to Peters, the South African government would itself be completing a 20 year Liquid Fuel Infrastructure Plan before the end of the year and included in this plan was a continuing commitment for the country to increase its own crude oil refinery capability. “Work that has already been done on our national oil company’s Mthombo project and other related initiatives will be incorporated in the implementation of the Liquid Fuels Infrastructure Plan,” she said.
She also noted in her speech that, with crude oil prices continuing to be higher-than-expected, she would “soon make a statement in Parliament about this matter, specifically on the impact of global fuel prices and how we should respond to these as a country”.
With South Africa becoming a significant importer of fuel, having brought over five-billion litres of diesel and petrol into the country in 2011, Peters commented that this increase had far-reaching implications for the existing policy frameworks. “I am of the view that the Department of Energy needs to conduct a review to determine whether the pricing framework is still relevant given these changing conditions,” she said.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...