Mkhize on the Night of the Stars Function at Ushaka Marine
8 March 2007
The Chairperson of Spring Lights Gas Company, Advocate Kessie Naidoo
The Deputy Chair Spring Lights Gas, Mrs Nora Fakude-Nkuna
Deputy Ethekwini Mayor, Logie Naidoo
CEO of Spring Lights Gas Company, Mr Motsamai Koapeng
Executive Director of Sasol Limited, Dr Bennie Mokaba
Shareholders
Customers
Staff members present
Ladies and gentlemen
It gives me great pleasure to be part of this prestigious celebration of the
Night of the Stars. The growth in sales which has been reported by the Spring
Lights Gas Company is an indication of success. Today is the day to say thank
you, especially to customers who supported the company since its formation in
2002. In my budget speech on the 1st of March, I alluded to the fact that
provincial government has made a decision that we'll not do business with
companies that have failed to embrace government's broad-based Black Economic
Empowerment. Through Black Economic Empowerment (BEE), government hopes to
ensure that we bridge the gap between the first and second economy.
The Spring Lights Gas Company is one of the companies that has fully
embraced BEE and has shown commitment to ensuring the growth of the economy in
the province. I am told that since 2002 the company has sold 3,8 million
Gigajoules (GJ) of gas per annum, which represent a 40% growth in sales volume.
According to the company's projections, this figure is expected to grow further
to 4,2 million GJ for the year ending June 2007. I am certain that in the
process many jobs have been created and will continue to be created. This will
address the problem of unemployment. Prior to 1994, energy provision was
reserved for the privileged.
The democratic government's White Paper on the Energy Policy addresses the
energy requirement of the poor. It seeks to enhance the efficiency and
competitiveness of the South African economy by providing low-cost and high
quality energy inputs to the majority of our people and the industrial
sector.
Approximately 40% of all homes in South Africa and tens of thousands of schools
and clinics are without access to electricity. The electricity distribution
industry continues to experience high levels of non-payment and electricity
theft. Although there has been good progress towards government's goal of
"electricity for all" as far as electrification is concerned, government is
fully aware that the increase in electrification would not be achieved soon due
to affordability problems.
The inability to pay for electricity has resulted in electricity cut-offs
and illegal reconnections. This calls for co-operation between government and
the private sector. Gas has been identified as alternative to electricity.
Apart from its affordability and portability, it is also environmentally
friendly. Reports suggest that gas is the only energy source for power
generation that is forecast to have a growth in demand. Gas is forecast to
account for 24% of total power generation by 2010, increasing to 30% by 2020.
The establishment of the National Energy Regulator in 2005 reaffirms
government's commitment to sustaining this growth. The regulator will ensure a
long-term reliability of energy supply required by industries in the energy
business.
Gas infrastructure
Through Gas Infrastructure Plan, government has laid down a transparent
system which can be benchmarked against any similar system in the world. This
plan encourages international investment and it stimulates economic activity.
There are number of challenges that this government is facing in terms of the
provision of energy for the poor and these include the vandalism of gas
pipeline in outlying areas. We are fully aware that gas suppliers and
transporters always look up to government for protection of their
infrastructure. Government's policy is that pipeline companies must introduce
social development plans that would benefit communities in proximity of
transmission pipelines. Communities will have a vested interest. Recently we've
read about reports of companies collaborating with international organisations
such as United Nations Development Programme and the Global Environment
Facility with the sole purpose of addressing the energy crises in the country.
We welcome such initiatives.
Friendly environment
Our constitution stipulates that everyone has the right to an environment
that is not harmful to their health or well-being and the right to have the
environment protected for the benefit of present and future generations. We
have heard of cases of fuel leaks particularly in the Durban South industrial
basin. Allow me to acknowledge the Spring Lights Gas Company's environmentally
friendly policies. The company has been successful in its attempt to reduce
harmful emissions that has plagued the community over the years. I am hopeful
that the company will involve the community in any plans for future
expansions.
Thank you
Thuthuka KwaZulu-Natal!
Issued by: Department of Finance and Economic Development, KwaZulu-Natal
Provincial Government
8 May 2005
Source: KwaZulu-Natal Provincial Government (http://www.kzntreasury.gov.za)
