The Energy Regulation and Markets Review - Stikeman Elliott

South Africa
Natural gas is imported into South Africa from Mozambique. The governments
of Mozambique and South Africa, together with the pipeline operator, own the Temane–
Secunda pipeline through a joint venture. Gas imports from Mozambique via this
pipeline provide the 4 per cent natural gas contribution to South Africa’s primary energy
resource base.
iv Oil
As with natural gas, South Africa’s fledgling upstream oil industry has limited potential.
South Africa imports all its crude oil requirements.
Domestic demand for liquid fuels is met by synthetic fuels (36 per cent) produced
locally mainly from coal and the balance by liquid fuels produced locally from the
refinement of imported crude oil (76 per cent). South Africa has limited diesel-fired
electricity generation (less than 0.1 per cent used for peak and emergency loads).
II
REGULATION
i The regulators
The key regulators of the South African energy industry are the Minister of Minerals, the
Minister of Energy, the National Energy Regulator of South Africa (‘NERSA’) and the
Controller of Petroleum Products.
The Minister of Minerals is responsible for the overall regulation of all upstream
activities in the minerals and petroleum sectors: prospecting, exploration, mining and
production. This responsibility entails the articulation of national government policy
and the making of subordinated or delegated legislation through regulations and notices
as permitted under primary legislation (that is, legislation enacted by Parliament).
The Minister is supported in this function by the Department of Minerals. Upstream
activities in the minerals and petroleum sector are primarily governed by:
a Mineral and Petroleum Resources and Development Act (‘the MPRDA’); 4
b Mineral and Petroleum Resources Development Regulations (‘the MPRD
Regulations’); 5 and
c Mineral and Petroleum Resources Royalty Act (‘the MPRRA’). 6
It should be noted that significant amendments to the MPRDA have been enacted
pursuant to the Mineral and Petroleum Resources Development Amendment Act 7 but
these amendments are not yet in effect.
The Minister of Energy is responsible for the overall regulation of all downstream
activities, including electricity generation, transmission and distribution; the transmission,
distribution, storage, liquefaction, re-gasification and trading in gas transported by
pipeline; the construction and operation of petroleum pipelines, petroleum marine
4 Act 28 of 2002.
5 Promulgated in GN R527 in GG 26275 of 23 April 2004.
6 Act 28 of 2008.
7 Act 49 of 2008.
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