Sapia welcomes energy budget speech

23rd July 2020 By: Tasneem Bulbulia - Senior Contributing Editor Online

Industry organisation the South African Petroleum Industry Association (Sapia) has welcomed the Budget Vote speech delivered by Minister Mmamoloko Kubayi-Ngubane on behalf of Mineral Resources and Energy Minister Gwede Mantashe, earlier this week.

The organisation is particularly pleased about the announcement of the Liquefied Petroleum Gas (LPG) Expansion Initiative which aims to double the consumption of LPG over the next five years.

"Sapia members are working towards this objective. LPG is the most efficient form of energy for cooking, space heating as well as water heating and can alleviate pressure on [State-owned utility] Eskom,” Sapia said.

Moreover, the organisation welcomed the announcement of the appointment of the Council for Geoscience as the implementing State agency for the Carbon Capture Utilisation and Storage (CCUS) project.

“Even though our refineries are only small contributors to South Africa’s greenhouse-gas emissions, we believe a just transition towards a sustainable green economy can only be accomplished through collaboration, effective policy and finance.

"CCUS is one of those collaborative projects supported by effective policy to make it a critical enabler for the transformation of the energy system of which liquid fuels is a part.”