KwaZulu-Natal Business 2020-21 edition
The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the vital role played by ports in the province, from the coal exported from Richards Bay to the new cruise liner terminal addition to the Port of Durban. The 10th anniversary of the 2010 FIFA World Cup coincides with the birthday of the Moses Mabhida Stadium, an iconic design that has become a standard feature on the KwaZulu-Natal sporting and events calendar. Likewise the Durban ICC which continues to burnish the province’s reputation as meetings and convention centre.
The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the vital role played by ports in the province, from the coal exported from Richards Bay to the new cruise liner terminal addition to the Port of Durban. The 10th anniversary of the 2010 FIFA World Cup coincides with the birthday of the Moses Mabhida Stadium, an iconic design that has become a standard feature on the KwaZulu-Natal sporting and events calendar. Likewise the Durban ICC which continues to burnish the province’s reputation as meetings and convention centre.
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OVERVIEW<br />
Oil and gas<br />
A huge LPG storage facility has been built at Richards Bay.<br />
The supply of liquid petroleum gas (LPG) is set to be made easier<br />
and more reliable with the erection of the 22 600-ton<br />
Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals<br />
has constructed the R1-billion storage facility for Petredec,<br />
which trades, transports and distributes LPG and other commodities.<br />
South Africa’s annual consumption of LPG, currently at 400 000 tons,<br />
is expected to rise to 600 000 tons. If a private partner can be found,<br />
a liquid natural gas (LNG) plant will produce 2 000MW at Richards Bay.<br />
This forms part of national government’s allocation of 3 126MW to<br />
natural gas in its medium-term energy policy to 2030.<br />
The world’s four largest<br />
LPG storage tanks at the<br />
Bidvest Tank Terminals<br />
site in Richards Bay.<br />
Image: Bidvest<br />
The National Department of Mineral Resources and Energy (DMRE)<br />
decided in 2016 that one of the first two gas-to-power plants to be<br />
constructed under the Independent Power Producer Procurement<br />
Programme would be allocated to Richards Bay. This has the potential<br />
to turn the Richards Bay Industrial Development Zone (RBIDZ) into an<br />
energy hub. The fact that neighbouring Mozambique has significant<br />
offshore deposits is a factor in this ambition. To produce its allocation<br />
of 2 000MW, the plant would have to use a million tons a year of LNG.<br />
An indication of the scale of activity in Mozambique came in 2019<br />
when Anadarko Petroleum, a US company, signed off on a $20-billion<br />
project to build an LNG plant. The projected spin-offs for the South<br />
African economy are estimated to top R7-billion.<br />
Online Resources<br />
National Energy Regulator of South Africa: www.nersa.org.za<br />
Petroleum Agency SA: www.petroleumagencysa.com<br />
South African National Energy Association: www.sanea.org.za<br />
South African Petroleum Industry Association: www.sapia.co.za<br />
Sector Insight<br />
Italian company Eni is<br />
looking for hydrocarbons.<br />
Eni, one of the world’s biggest<br />
energy companies, has an<br />
agreement with Sasol Petroleum<br />
International to explore for<br />
hydrocarbons off the coast of<br />
<strong>KwaZulu</strong>-<strong>Natal</strong>.<br />
The regulator and promoter<br />
of oil and gas exploration in South<br />
Africa, Petroleum Agency South<br />
Africa, has awarded coalbedmethane-gas<br />
exploration rights<br />
in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy<br />
Africa, which has a partnership<br />
with the Central Energy Fund.<br />
These awards are for onshore<br />
exploration. The Petroleum<br />
Agency SA is an agency of the<br />
National Department of Energy.<br />
Getting fuel to the province<br />
of Gauteng is the key mission of<br />
the new multi-purpose pipeline<br />
(NMPP). Refined products such<br />
as jet fuel, sulphur diesel and<br />
both kinds of octane petrol<br />
are carried. The infrastructure<br />
of Transnet Pipelines is said<br />
to reduce the number of fuel<br />
tankers on South African roads<br />
by about 60%.<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> is home to<br />
two major oil refineries and is<br />
the first link in the pipeline chain<br />
that links Gauteng province, the<br />
industrial heartland of South<br />
Africa, with vital fuels. The Port<br />
of Durban handles 80% of South<br />
Africa’s fuel imports. <strong>KwaZulu</strong>-<br />
<strong>Natal</strong> is thus a key player in the<br />
country’s oil and gas industry. ■<br />
KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />
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