Cape Town’s new independent fuel storage, distribution and loading facility, in addition to a petroleum pipeline, will become operational in the first quarter of 2017, as the 18-month construction starts in a few weeks.
Burgan Cape Terminals planned to start ground clearing activities at the Eastern Mole in the Port of Cape Town in early September after having received the environmental-impact assessment (EIA) approval in June.
The EIA, which was submitted to the Western Cape Department of Environmental Affairs and Development Planning in October last year, was one of the final regulatory hurdles for the expectant fuel storage terminal operator.
Burgan, which was formed to develop and manage the fuel storage and distribution facilities on behalf of Transnet National Ports Authority for the next 20 years, would inject around R650-million during the first two years of development.
The establishment of the new loading and storage facility, to which oil major Chevron was opposed, was expected to ensure security of supply as demand for petroleum products in South Africa rises.
Chevron was currently the only refinery in the region.