Western Cape Economic Development on gas shortage

Red Tape Reduction intervenes in province-wide gas shortage

The Western Cape Government’s Red Tape Reduction Unit has intervened to mitigate the economic impact of the gas shortage in the province.

Alan Winde, Minister of Economic Opportunities, said the Red Tape Reduction Unit had liaised with Transnet National Ports Authority (TNPA) to develop an interim solution to bridge the shortage of liquefied petroleum gas.

“Energy powers growth and job creation. Without a stable supply, our economy is under threat. In response to complaints from local businesses, the Red Tape Reduction Unit engaged with the TNPA and KayaGas, the dominant importer of Liquified petroleum gas (LPG).

“KayaGas receives its gas from vessels which dock in the Cape Town Port and there is a 12 hour limit on the time they may spend in the port. Through the Red Tape Unit’s intervention, they were able to secure an additional four hours in the port. The additional time will allow them to stock all of the retailers on their books, for the first time in several weeks.”

Minister Winde said it was an interim solution and that TNPA and KayaGas were in ongoing discussions as to a longer term fix.

“The gas shortage is part of a broader set of energy challenges we are facing, including load shedding and the increasing cost of energy for businesses and households. This is why the Western Cape Government has an Energy Security Game Changer. We are working with the City of Cape Town and businesses to find solutions to minimise the impact of the energy crisis.

We’ll continue to build a supportive environment for alternative energy supplies. Work on the Liquefied Natural Gas project continues in the 2015/16 financial year with GreenCape assisting the City of Cape Town with an Environmental Impact Assessment to support the conversion of Liquefied natural gas (LNG) to power.

In another major development for renewable energy, the Atlantis GreenTech Special Economic Zone team has completed a successful feasibility study and is aiming to submit an application for designation shortly.”

For media queries, kindly contact:
Bronwynne Jooste
Tel: 021 483 3550
Cell: 060 970 4301
E-mail: bronwynne.jooste@westerncape.gov.za

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