South africa speech of honourable minister of energyhon jeff radebe at black energy professionals association (bepa) launch – ein news gas 2 chainz


The initiative to launch the Association could not have come at the right time, when we are celebrating the life well lived of the Mother of the Nation gas 87 89 93, our stalwart Mama Winnie Madikizela-Mandela who devoted all her life for the betterment of our people. As quoted from Mama Winnie Memorial Obituary “The life of Madikizela Mandela encompasses commitment to community upliftment, opposition of apartheid and determination to build a non-racist, non-sexist and democratic South Africa”. It is up to all of us to take a batton from where she has stopped gas stoichiometry calculator and continue with the struggle for Radical Economic Transformation.

Furthermore, the NDP envisages a South Africa which, by 2030, will have amongst other things, adequate supply of electricity and liquid fuels to avoid disruptions to economic activity, transport and welfare. The NDP therefore proposes diversity by way of alternative energy resources and energy supply options, both in terms of power generation and the supply of liquid fuels.

Given South Africa’s current socio-economic realities, our development focus and available resources, we have to take a pragmatic approach. The economic structure of our country still does not reflect our demographics. The energy sector is no different. There is therefore a need for increased and greater participation in the economy by the previously marginalized.

South Africa’s IPP Programme remains the only vehicle that progressively enables participation by black investors and industrialists in electricity generation. Through its unique programme design, the Renewable Energy IPP Programme requires a mandatory 40% of South African Entity Participation and electricity grid uk black enterprise and broad-based black participation in the form of ownership, economic and socio-economic benefits.

With these latest projects, black shareholding of 64.2% of local ownership has been achieved, and shareholding by black South Africans has also been secured across the value chain. Black ownership and participation in Engineering, Procurement and Construction (EPC origin electricity login) and Operating and Maintenance (OM) Project Companies have improved under this new round of projects. Around 86%, or 1 748, of the top management jobs of the new IPP Project Companies will be filled by black professionals.

Another important focus of the IPP Programme is to ensure sustainable benefits for these mostly rural local communities. The Renewable Energy IPP Programme is embracing local community socio-economic and enterprise development and through an inclusive geographic approach it has created opportunities across the country – in all 9 provinces – in mostly lagging rural areas.

Local community shareholding (total equity) in the newly signed projects u gas station amount to 7.1% (or R1 627 million). The local community shareholders for these projects will receive R5.9 billion net income over the 20 year life of the projects. In addition, the IPPs will enable local communities to further benefit directly from the investments attracted to the area and IPP commitments in the areas of education and skills development social welfare, healthcare, general 9gag instagram administration and enterprise development.

Although these statistics are encouraging, we believe that there is so much more we can do to optimise black ownership and ensure active participation in the energy sector. Some of the economic transformation building blocks that we are already working on are in areas such as improving access to finance for local black shareholding companies and the structuring of re-financing arrangements. Finding innovative and affordable funding mechanisms for the participation of black entrepreneurs in this space, will allow the development of black industrialists as well as ensuring participation of black entrepreneurs in main stream economy.

We are also reviewing community ownership structures to ensure that communities have an active voice in decision-making. Ownership without getting the necessary opportunity to develop skills gas definition and participate in the projects is of no value. We would like to see South African black Independent Power Producers very soon bidding in other countries, leading the teams developing these projects.

The Department’s Electrification programme also provide opportunities in the electricity sector. The government has in this current MTEF been spending on average around R5 billion per annum to electrify households. This electrification is delivered through Eskom and municipalities. Many small engineering and construction firms benefit from this programme gas bubble but a lot more can be done to facilitate participation by new entrants. BEPA members are electricity invented what year therefore encouraged to take their space in this sector.

In as far as liquid fuels and gas, transformation in the oil and gas sector has made some progress since the dawn of democracy, however not at the pace that we expected. We celebrate the fact that Spring Lights Gas is a black owned company operating in the natural gas sector with major clients in KZN. We also are mindful of Total’s unencumbered BEE status that was achieved a few years ago.

The Department is also in the process of aligning the Liquid gas natural fenosa Fuels Charter (LFC) to the B-BBEE Act, 2003 as amended and to ultimately develop a sector-specific Code of Good Practice in order to ensure compliance with the B-BBEE Act, 2003. This is to ensure that there are no conflicting prescripts with respect to transformation requirements in the petroleum Sector.

Ladies and gentlemen, I believe that black owned companies have enough experience to begin to import a certain quantity of crude oil working together with their counterparts in countries of crude origin. I believe that the immediate focus should be to enable BEE companies to import the sizeable of West African crude us electricity hertz oil. Nigeria and Angola account for 50% of South Africa’s crude oil imports. The Financial Institutions in the country will need to back up such transactions. This approach should extend to the transportation of crude oil through joint chartering of vessels. This will require discipline and competence on the part of all those companies that participate.

Access to import and export infrastructure by emerging black owned companies also remains a challenge. We are supportive of Transnet’s initiative to open up this area of the value chain to black owned companies. This newly formed organisation should keep a keen interest gas utility cost the deliberation on the port infrastructure strategy and exert the appropriate influence in its implementation.

The department adjudicates and where appropriate issues licenses for retail service station, wholesaling and very rarely for manufacturing. The participation of BEE Companies in the retail sector is way below expectations and in this regard oil companies continue to renew leases with White owned retailers. This has got to change rapidly. A commitment is required from the CEOs of oil majors in this regard. BEE Companies end up applying for wholesaling licensing and after getting the wholesale licenses still have to negotiate with oil majors for products.

With regard to Gas to Power: South Africa gas prices in texas 2015 has recognized this global shift and has set itself the vision to enter the global gas market and promote the development of a gas market, not only locally here in SA but also in the Southern Africa Region. For emerging economies, switching to gas as a competitive, cleaner and more flexible source for power production is a game changer.

South Africa’s introduction of gas into the energy mix, could arkla gas pay bill also play a major role in regional development. Sourcing of gas from neighbouring countries such as Mozambique can result in a win-win situation, where piped gas will stimulate economic activity along the routing areas in both Mozambique and South Africa. Through maharashtra electricity e bill payment regional transport networks, gas could be introduced into adjacent, landlocked SADC countries.

The LNG-to-Power Programme will be the main vehicle through which to stimulate this envisioned gas market in South Africa. It requires an all-inclusive effort by the general government and other stakeholders in South Africa. Over the last number of years, we have been putting in place the enabling framework for private sector participation in our energy sector to enable gas industry development and growth.