and South African Petroleum Industry Association (SAPIA)
7 September 2006
The Minister of Minerals and Energy, Minister Buyelwa Sonjica, met with the
Governors of SAPIA on Wednesday, 6 September, to discuss the recently released
report of the Moerane Investigating Team on the December 2005 fuel
shortages.
The meeting agreed that the Moerane team's report was sound and the team's
overall findings on the causes on the December 2005 shortages were generally in
line with industry's views.
The essence of these findings was that the shortages had "resulted from a
convergence of a number of events."
The meeting then focussed its attention on the anticipation by an
investigating team, that another supply crisis could emerge in the second half
of 2006 as a result of scheduled refinery maintenance work due to be done
during that time.
The investigating team said "It is imperative that a plan be put in place
with immediate effect to avoid this (another shortage) happening."
SAPIA Chairperson, Adv. Rams Ramashia, advised the Minister that the
industry, in conjunction with DME and other stakeholders had taken a number of
steps to ensure that no repetition of the December 2005 crisis would occur in
2006.
He said "It is unlikely that we will again suffer a convergence of so many
adverse factors. Some such as clean fuels changes were in fact once off events.
The DME chaired Logistics Planning Team has been jointly established and it
meets on a regular basis to monitor the supply situation throughout the
country, to enable good communication between all role players and to ensure
that adequate stocks of product are being sourced to cover periods when
refineries were undergoing maintenance. Essentially the Logistics Planning Team
develops and ensures an industry solution for any anticipated supply issues. He
also said "As contingency industry's stock levels are at present at 'full tank'
levels throughout the country."
The meeting noted that the DME and other stakeholders had taken many other
actions which should assist them in dealing with any unforeseen events that may
impact on supply in the future. These would also help them ensure the future
security of supply of liquid fuels for the nation.
These include:
* fast tracking the expansion of the coast to Gauteng products pipeline
* setting up a team to carry out a full study of the long term demand/supply
situation in the country and to make strategic recommendations
* conducting a review of the regulatory system
* re-evaluating strategic and commercial stocks policies
* importing Liquefied petroleum gas (LPG) to cover shortfalls.
Minister Sonjica said "We must ensure that South Africa has the fuel it
needs to meet its growth targets. A reliable fuel supply is the key to the
achievement of our target of 6% per annum growth by 2010."
She concluded the meeting by saying that a further meeting had been set up
for early October with SAPIA Governors to discuss the recommendations of the
Investigating Team in more detail. Sonjica said, "I intend to ensure that a
partnership is built between the industry and my Department that will result in
the relationships that are needed to ensure that the events of December 2005 do
not recur. We owe this to the people of South Africa."
Enquires:
Ms Bontle Mafuna
Tel: (012) 317 8086
Fax: (012) 322 4954
Cell: 082 571 4310
E-mail: bontle.mafuna@dme.qov.za
Issued by: Department of Minerals and Energy
7 September 2006
Source: Department of Minerals and Energy (http://www.dme.gov.za)
