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Pipelines & Storage News

Big fuel price hike announced as global demand rises 

By: Henry Lazenby     30th March 2012 Motorists will have to fork more for petrol and diesel from Wednesday, when the fuel price goes up on the back of increased global demand. Department of Energy (DoE) deputy director general of hydrocarbons and energy planning Tseliso Maqubela announced the fuel price hike, which will take effect... 

Malawi moves to build fuel reserves across three cities

By: Marcel Chimwala     30th March 2012 The Malawi government plans to invest $25-million in the construction of fuel reserves in the country’s three major cities of Lilongwe, Blantyre and Mzuzu. 

Pipeline tariff increase adds more upward pressure to Gauteng petrol prices 

By: Terence Creamer     15th March 2012 The National Energy Regulator of South Africa (Nersa) confirmed on Thursday that it had granted Transnet Pipelines a 22% tariff increase for its Durban-to-Johannesburg fuel pipeline for 2012/13, which was expected to raise Gauteng’s petrol price by a further 4c/l as from next month. The... 

Growth in the pipeline for empowered SA oil company

By: Gia Costella     10th February 2012 Empowered oil company Afric Oil plans to increase its market share and business volumes this year, finance director Mangadi Dikotla tells Engineering News. 

Sasol expects up to 90% increase in H1 earnings

By: Henry Lazenby     2nd February 2012 South African petrochemicals group Sasol on Thursday advised shareholders that it expected an increase of between 80% and 90% in 2012 first half headline earnings, when compared with the first half of the 2011 financial year. Sasol initially forecast a 45% year-on-year increase in its interim... 

First fuel begins to flow through SA’s new R23bn fuel pipeline  

By: Henry Lazenby     11th January 2012 State-owned freight logistics group Transnet took delivery on Wednesday of its new multiproduct pipeline (NMPP), which runs between the coastal city of Durban and Jameson Park, near Heidelberg, south of Johannesburg. The pipeline, which would be commissioned in stages over the coming 18 months,... 

NMPP structural steel work contract to be completed mid-December

By: Sinette Goosen     9th September 2011 Kinross-based structural steel construction and specialised welding company Kinross Industrial Supplies Manufacturing Engineering (Kisme) reports that construction work on a structural steel project for State-owned freight logistics group Transnet’s new multiproduct pipeline (NMPP) will be... 

More technical work needed to define SA’s shale gas framework 

By: Terence Creamer     6th September 2011 The exploitation of shale gas in South Africa could be a "game changer" for the gas sector, a senior Department of Energy (DoE) official said on Tuesday. But he also appealed for patience to allow a Department of Mineral Resources (DMR) task team to finalise its investigation into the issue of... 

Test fracking needed during shale exploration phase – industry 

By: Terence Creamer     19th July 2011 Questions have again been raised as to whether any possible future shale gas exploration licences for the Karoo could explicitly prevent so-called "test fracking" in favour of less "invasive" techniques to understand the subsurface of the area ahead of any government decision to allow, or... 

Study launched into $8.5m Mombasa jetty prospect

By: John Muchira     15th July 2011 Spain's Alatec Consulting has been awarded a $8,5-million contract to undertake the feasibility study on the proposed second petroleum offloading jetty in Kenya. 

State firms to spend R105bn this year, but new capital needed to accelerate delivery

By: Terence Creamer     1st June 2011 Public Enterprises Minister Malusi Gigaba has reiterated government’s intention to supplement the limited balance sheets of the country’s infrastructure-focused State-owned enterprises (SoEs) in partnering with large mining, industrial and financial services companies. South Africa’s power... 

SA petroleum pipeline tariffs among the highest in the world – BP  

By: Petronel Smit     1st April 2011 Petroleum producer BP estimates that the 59,9% Transnet pipeline tariff increase could result in a R1-billion yearly cost to the ecomony, as well as 40 000 job losses. The National Energy Regulator of South Africa’s (Nersa) on Thursday set new tariffs for Transnet’s petroleum pipeline, allowing... 

Nersa grants Transnet 59,9% fuel pipeline tariff increase 

By: Petronel Smit     31st March 2011 The National Energy Regulator of South Africa (Nersa) on Thursday set new tariffs for Transnet’s petroleum pipeline, allowing the State freight logistics group to realise a 59,9% revenue increase, from R1,2-billion in 2010/11 to R1,9-billion in 2011/12. Transnet initially applied for a 69,1%... 

Gama back at the helm of rail, as new Transnet exco is named 

By: Terence Creamer     16th March 2011 State freight logistics group Transnet has confirmed the reinstatement of Siyabonga Gama – who was dismissed last year for “governance breaches”, but was reappointed as an executive in the office of the chairperson in February – as the head of its largest subsidiary, Transnet Freight Rail (TFR).... 

Cost-recovery mechanism flagged, as SA unveils cleaner fuels vision

By: Terence Creamer     8th March 2011 The Department on Energy (DoE) unveiled its much-anticipated draft position paper on fuel specifications and standards on Tuesday, which, if implemented, would see the phased introduction of Euro V-type fuel in South Africa as from 2013, as well as the upgrade of South Africa’s refinery fleet by... 

BP to invest $200m in SA energy infrastructure

By: Loni Prinsloo     8th March 2011 Energy group BP would invest $200-million in infrastructure development in South Africa over the next two years, CEO Sipho Maseko said on Tuesday at the opening ceremony of the company’s rail gantry expansion in Pretoria. “We will be spending this money on things that the country really needs... 

Molefe promises new rail turnaround strategy, wants to leverage private finance 

By: Terence Creamer     2nd March 2011 The new CEO of State-owned freight logistics group Transnet has promised to deliver a turnaround strategy for the underperforming rail business within the next three months and has also indicated that he will “aggressively” pursue partnerships with the private sector in a bid to boost capacity on... 

Transnet follows Eskom with $750m global bond issue

By: Terence Creamer     4th February 2011 State-owned freight logistics group Transnet confirmed at the weekend that it had issued an inaugural $750-million five-year bond under its $2-billion global medium term note (GMTN) programme, while stressing that the debt had been secured in the absence of government guarantees. The issuance... 

Gigaba sets April deadline for pipeline panel report back 

By: Terence Creamer     31st January 2011 Public Enterprises Malusi Gigaba on Monday unveiled a ‘panel of experts’ to probe the cost overruns and time delays associated with Transnet’s new multiproduct pipeline (NMPP) from Durban to Johannesburg – the panel will report its findings by the end of April. The multidisciplinary team... 

Gigaba says pipeline probe not a ‘witch-hunt’, to focus on lessons 

By: Terence Creamer     27th January 2011 Public Enterprises Minister Malusi Gigaba, who in December expressed dismay with the cost overruns and delays on the new Transnet fuels pipeline from Durban to Johannesburg, stresses that the proposed departmental review of the project is not a “witch hunt”, but is instead designed to ensure... 

Sasol plans R4m gas pipeline extension in Gauteng

By: Petronel Smit     19th January 2011 JSE-listed Sasol is planning to construct a R4-million pipeline extension and customer meter station linked to Sasol Gas' existing distribution facilities in the Olifantsfontein area in Gauteng. The petrochemicals producer reported that the pipeline extension would be built to supply gas to a... 

Transnet confirms shock surge in pipeline price tag to R23,4bn 

By: Terence Creamer     8th December 2010 State-owned freight logistics group Transnet announced another shocking surge in the price tag for its new fuel pipeline from Durban to Johannesburg, which is now expected to cost R23,4-billion to complete – more than double the initial estimate of R11,1-billion made in 2008 and materially up on... 

Revenue recedes despite increased tariffs, volumes

3rd December 2010 Revenue from State-owned freight logistics company Transnet Pipelines (TPL) division for the six months ended September has fallen 1,3% to R669-million despite a 6,1% increase in tariffs and a 2% increase in volumes of products transported, said Transnet CEO Chris Wells, last month. 

On track for completion in 2013

3rd December 2010 State-owned freight logistics group Transnet’s new multiproduct pipeline (NMPP), which is being built between Durban and Johannesburg, has had its deadline extended to December 31, 2013, and is on track for completion. 

Durban to Joburg pipeline to help with security of supply

By: Schalk Burger     3rd December 2010 The delays on the State-owned freight logistics group Transnet’s new multiproduct pipeline (NMPP) will require the Durban to Johannesburg pipeline (DJP) to continue running for nine months beyond March 31, 2011, to cope with security of supply challenges to Gauteng. 

Technological innovations in use

By: Schalk Burger     3rd December 2010 State-owned freight logistics group Transnet’s new multiproduct pipeline (NMPP), being built between Durban and Johannesburg, will use a number of technological innovations including cathodic protection against rust and, as the name implies, multiple product transportation through one line, says... 

Progress being made on R240m pipeline project

By: Eleanor Seggie     3rd December 2010 Civil engineering construction company Esorfranki is making progress on its flagship R240-million BG3 pipeline project, having further excavated the trench, and is expecting to lay pipes down imminently, says Esorfranki CEO Bernie Krone. 

Transnet awards GE unit R180m backup power contract for pipeline 

By: Terence Creamer     13th July 2010 State-owned freight logistics group Transnet has awarded a R180-million contract to GE South Africa Technologies (GESAT), a venture involving GE Transportation and the Mineworkers Investment Company, to supply ten medium speed, diesel-powered generators for the R15,42-billion new multi-product... 

Global technology group extends energy efficiency offering to SA

By: Petronel Smit     23rd April 2010 The recently launched local branch of ABB Global Consulting’s energy efficiency consultancy service guarantees industrial energy savings of between 5% and 20%, depending on the current state of a company’s energy management practices. 

Peters promises cleaner-fuels ‘roadmap' by December

By: Jade Davenport     20th April 2010 Energy Minister Dipuo Peters has reaffirmed government's commitment to modernising South Africa's fuel specifications on Tuesday, and announced that a "roadmap" for cleaner fuels would be issued by December. Peters told the National Assembly during the Department of Energy's (DOE) budget vote... 

Union threatens to down tools at Transnet

By: Chanel de Bruyn     16th April 2010 The United Transport & Allied Trade Union (Utatu) has warned that workers in Transnet’s freight, pipelines, harbours and Engineering operations could go on strike soon, should a second conciliation meeting around a pay dispute, to be held on Monday, not lead to an agreement. The union on Friday... 

Nersa rebuffs Transnet, approves modest 6% tariff increase 

By: Terence Creamer     26th March 2010 The National Energy Regulator of South Africa (Nersa) has again granted Transnet a materially lower allowable revenue increase for the period April 1, 2010, to March 31, 2011, than had been requested by its fuel pipelines unit earlier in the year. The State-owned freight logistics group applied... 

Transnet targets 2010 Cabinet approval for public-private investment framework  

By: Terence Creamer     18th March 2010 State-owned freight logistics utility Transnet is optimistic that Cabinet will endorse a framework for private sector participation (PSP) in its rolling project pipeline, which currently stands at R93,4-billion, before the end of 2010, and anticipates that the first major PSP projects will be... 

$320m ‘soft’ Japanese loan for Kenyan geothermal project

By: John Muchira     12th March 2010 Kenya has received a $320-million soft loan from Japan to boost investments in the energy sector. 

Transnet confirms R2,75bn rise in pipeline cost, year delay 

By: Terence Creamer     9th March 2010 State-owned transport utility Transnet has confirmed that the cost of its new multiproduct petroleum pipeline (NMPP) from Durban to Gauteng has escalated by R2,75-billion to R15,42-billion, and that the project will be completed a full year later than initially scheduled. The new NMPP network,... 

BP calls for fuel-supply review before SA makes new refinery call 

By: Terence Creamer     19th February 2010 Petroleum group BP Africa has called on the South African government to proceed with caution before approving the construction of a $10-billion-plus greenfield refinery at Coega, in the Eastern Cape, making a public appeal at the weekend for a far-reaching review of all the supply-side options,... 

Cap of R4,5bn placed on Transnet's fuel-levy funding 

By: Terence Creamer     18th February 2010 State-owned transport utility Transnet has indicated that a cap of R4,5-billion has been set for the amount of capital it can extract from that portion of the increase in the fuel levy to help it fund a R12-billion fuel pipeline from Durban to Johannesburg. In his inaugural Budget address,... 

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