August 8, 2017 [ESI Africa] - South Africa-based energy infrastructure company Sunrise Energy, has established an open-access liquefied petroleum gas (LPG) import and storage terminal, in Saldanha Bay, which will enable the import of LPG in large quantities.
Engineering News reported that the R1.02 billion ($76 million) facility, which is Africa’s largest open-access LPG import terminal, was launched on Tuesday. The facility is intended to boost regional energy security and increasing downstream competition, strengthening the country’s oil and gas sector.
LPG Terminal to Boost Economy
The facility is a public–private partnership between Mining, Oil & Gas Services (Mogs) and the Industrial Development Corporation (IDC).
Engineering News reported that “Sunrise Energy is 60% owned by Mogs, with the IDC holding a 31% stake and another company, ilitha, holding 9%. Royal Bafokeng Holdings owns 51% of Mogs, with the balance being held by the Public Investment Corporation (PIC).”
Speaking at the facility launch was economic development minister, Ebrahim Patel: “The 140km corridor contains the most diversified energy mix in the country, including petroleum, gas, renewables, oil and nuclear energy.”
According to Patel, the investment into this facility would provide economic opportunities to distribute gas to end-users.
Present at the inauguration was South African energy minister Mmamoloko Kubayi who commented on the importance of having a sustainable energy mix: “The sustainability of the country’s energy supply includes a diversified energy mix. For cooking and space heating, the efficiency of LPG is unrivalled.
“Access to energy is critical to markets for economic growth. Having realised the benefits of LPG, it should be promoted on the same level as other energy sources.”
Inclusive Economic Growth
According to PIC corporate affairs head Deon Botha, the investment in Sunrise Energy was a significant PIC contribution to energy security and inclusive economic growth, Engineering News reported.
“It is part of our impact investing programme,” Botha said. He added: “We believe that meaningful economic growth can only be achieved when there is enough energy to keep it going.”
Sunrise Energy CEO Pieter Coetzee said LPG had the potential to displace 1.2GW of electricity during peak hours: “LPG could help transform South Africa’s energy space into a more favourable mix. LPG is between 20% and 50% more cost effective than electricity for light commercial and domestic thermal applications.”
—————————-
TankTerminals.com – Research, Market and Expand Your Presence within the Tank Storage Industry Learn more.
