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The National Energy Regulator of SA (Nersa) endorsed the decision of
its piped gas sub- committee not to grant Unigas a licence to build a
liquefied natural gas re-gasification facility and a 1926km gas
pipeline.
The decision is a setback for the development of SA’s piped gas
industry. The government’s energy white paper advocates the
diversification of the energy mix and the promotion of competition. But
Unigas is the second company to fail Nersa’s licence application test
within a year. In October, the regulator declined Gigajoule Africa’s
application for the construction of gas transmission and distribution
facilities.
At its meeting, the regulator approved the decision to decline Unigas’s
application. The company wants to build a pipeline in three phases. Its
route will traverse the Coega Industrial Development Zone, near Port
Elizabeth, to areas in the Eastern Cape, Western Cape and
KwaZulu-Natal. The first phase will cover 635km and include Mossel Bay,
George, Kynsna, Port Elizabeth, Grahamstown, Peddie and East London.
According to Unigas, this initial phase would be due for completion in
2013.
The second phase would cover Mossel Bay, Riversdale, Swellendam,
Caledon, Cape Town, Kraaifontein, Bloubergstrand, Atlantis, Swartland
and Saldanha. The second phase would be completed in 2015.
The third and final phase, of 780km, would include Butterworth,
Idutywa, Mthatha, Qumbu, Mount Frere, Mount Ayliff, Kokstad, Harding,
Port Shepstone, Margate, Scottburgh, Amanzimtoti, Durban,
Pietermaritzburg, KwaMashu, Tongaat , Stanger and Richards Bay.
Unigas CEO Fikile Holomisa said that Unigas would await Nersa’s reasons
for the decision. Based on the reasons, the company might reapply
for the licence, he said. Holomisa said the company was disappointed
with the decision. “The decision to apply for this licence was informed
by a study that showed that there is a market.”
National oil company PetroSA has said gas supplies to its Mossel Bay
gas-to-liquid refinery were dwindling and it was looking for new gas
supplies. Nersa is expected to make its reasons for the decision
public at a later stage.
PetrolWorld 290110 Source BusinessDayZA
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