AFRICAN ENERGY
15
A lift in the LPG market
By
Liquefied Petroleum Gas Safety Association of South Africa
The World Bank has dubbed liquefied petroleum gas (LPG) the
most environmentally friendly fossil fuel.
An increasing number of South African households
are switching to LPG for domestic cooking and
heating; these households save an average surplus
of 120kg of firewood annually. LPG is a safe, reliable,
and cost-effective alternative to traditional power
supply, for both domestic and industrial use; yet,
only 3% of South Africans are presently using it as
an additional energy source.
However, the recent opening of Africa’s largest LPG
import and storage terminal in Saldanha Bay is said to
create a complete turnaround. South Africa-based energy
infrastructure company Sunrise Energy, has established
an open-access (LPG) import and storage terminal in
Saldanha Bay, which will enable the import of LPG in
large quantities.
The construction of this terminal, including the five giant
underground tanks, created 470 jobs and at present
hosts 33 permanent employees. This R1.02-billion
facility is intended to boost regional energy security and
increase downstream competition, strengthening the
country’s oil and gas sector.
Minister of Economic Development of South Africa,
Ebrahim Patel, notes, “The 140km-corridor contains
the most diversified energy mix in the country, including
petroleum, gas, renewables, oil, and nuclear energy.”
This import and storage facility received its first load
from an LPG ship in May 2017 and it is reported to have
been busy ever since; this will likely boost gas availability
in South Africa. Time and again, South Africa experiences
an LPG shortage; however, since the commencement of
the Saldana Bay facility, LPG has not seen any shortage.
This facility can store up to 200 000 tons of LPG, which
is currently 57% of South Africa’s annual LPG demand.
The Saldanha Bay plant is the largest open-access LPG
import and storage facility in Africa and operates on an
open-access model. Therefore, this will facilitate the
entry of new players in the LPG industry, creating more
competition in the market. Wider gas availability will
bring competition to the industry and most likely bring
LPG prices down.
The production and supply of LPG involves many players
in the value chain, including the producers, wholesalers,
distributors, dealers, retailers, and end users. The
increased availability will be beneficial for all sectors.
Noting that, the built terminal is only the first phase
of the three phases approved by the National Energy
Regulator. PA
This facility
can store up to
200 000 tons
of LPG, which is
currently 57%
of South Africa’s
annual LPG
demand.
The Saldanha Bay facility is the
largest LPG import and storage
terminal in Africa.
www.plumbingafrica.co.za
October 2017 Volume 23 I Number 8