by Frank Beeton
M
oving
atters
Frank Beeton scans the transport world for news pertinent to the Logistics Sector.
Will Gas (Eventually) Solve South Africa’s
Clean Fuel Problems?
Last month we wrote about the moving out of the
July 1st 2017 compliance date for the general
introduction of new cleaner fuels in South Africa,
and noted speculation that the legislation may only
take effect in 2020.
and China. Many major vehicle manufacturers offer
versions of their products which are adapted to run on
CNG or LNG, while other specialist companies, notably
Westport of British Columbia, are active in the business
of converting conventional engines for operation on gas
fuels.
moving matters
W
e also pointed out that this delay would have
a negative impact on the introduction of
some new technology vehicles into the local
market, a fact which has subsequently been confirmed
by recently published comments from Kobus van Zyl,
managing director of Daimler Trucks and Buses South
Africa. Although some short-term relief has been provided
by Sasol’s recent launch of its ULS 10 ppm diesel fuel
through outlets in Gauteng and Mpumalanga, the lack
of greater availability of this fuel will inevitably limit the
vehicle purchasing options of transporters with a wider
operational footprint, especially those working in the more
remote areas of the country and across South Africa’s
borders.
However, comments made at the Gas Week conference
held in Bryanston during June, indicate an alternative
long-term direction for solving the problem. Speakers
suggested that South Africa should be focusing more
attention on gas developments to secure its future fuel
requirements. Extensive natural gas resources are known
to be present in the region, and these include recentlydiscovered coal-bed methane deposits in Botswana, the
shale gas deposits in the Karoo that are central to the
recent “fracking” debate, and natural gas deposits off
the Mozambique coastline. There is a perception that
further discoveries are likely to be made in the future
that will greatly increase the region’s importance as a
gas producer. However, exploration and extraction is
expected to be expensive, and substantial investments
will be necessary to roll out the process.
Natural Gas, in either Liquefied or Compressed form,
is widely used as a vehicle fuel, with the main markets
reportedly being in Iran, Pakistan, Argentina, Brazil
| logistics in action
Natural Gas-fuelled vehicles are popular for city and
suburban use in both passenger and goods-carrying
applications, because of their lower emissions, while
staying close to refueling facilities, and a project to
convert 1 000 minibus taxis to CNG operation was
recently inaugurated in Johannesburg.
Fuel distribution and availability are the greatest
challenges to the wider use of natural gas as a vehicle
fuel, but these issues will tend to scale down in
importance as the demand for alternative fuels increases.
Should the delay in the phasing-in of Euro 5-type fuels
in South Africa extend to 2020, additional momentum
could be added to the arguments of gas protagonists.
Shorter-term importation of Natural Gas for fuel use
could be used to develop a larger market and more
comprehensive distribution system in the country, ahead
of the establishment of large-scale local or regional
exploitation.
Wider use of CNG by the taxi industry could also
be a supportive development, as would be some
adoption of the fuel by city and suburban bus fleets.
The government has the potential to influence matt ers
considerably through the subsidisation or incentivisation
of such developments, and in the way it approaches the
regulation of exploration and exploitation activities.
As explained last month, clean fuel availability
is becoming a key issue in ensuring the safe,
environmentally acceptable and sustainable
operation of transport, and the country needs
a clear and affordable strategy, going forward,
to achieve these goals.
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AUGUST 2014