Building new oil pipelines

THERE are already oil pipelines between Durban and Gauteng. This is just as well considering that there are barely enough road and rail tankers to ferry the stuff we need up there. As it is every 11 minutes a road tanker sets off from Durban to the Reef. Everyone agrees we need a new pipeline and pretty damn soon -- especially because of the upcoming World Cup Soccer 2010 Tournament. Who will build it?

Three choices:

• The international oil companies (Shell, BP, Chevron, Total);
• Petronet (the semi- state company that runs the existing pipelines); or
• A completely new lot with no experience of pipelines but with the supreme advantage of skin colour or historical disadvantage. That is to say, they may have an inside track on actually getting a licence before anyone else does.

Option one is a non-starter. None of the oil companies are going to sink R8 billion in a new pipeline unless they were certain of getting their money back, and making a profit. This isn't likely with the government seemingly intent on licensing everything in the oil industry and re-writing the fuel regulations whenever they feel like it.

Option three probably has all the betting. But, think about it. Even Historically Disadvantaged South Africans are going to need the permission of all the landowners on the route between Durban and Gauteng. Permissions mean legal servitudes and we all know how long lawyers take. So, option three looks like a no hoper -- at least in time for 2010. That leaves Petronet. They have the knowledge. They have the experience. Most of all they have the land, and they can move fast. Big question: Will sanity prevail? Will Petronet get the licence? Let's hope so. Where might the money come from? Easy. From the subsidy on pipeline charges that Sasol and Total have been enjoying all these years.