Friday, 17 August 2007

Some pipeline posers

NOW here's a thing: The Petroline consortium, which plans to build a pipeline from Matola in Mocambique to Nelspruit in South Africa, applies for "permission" from the National Energy Regulator (Nersa) and gets it -- despite the Department of Minerals and Energy objecting. So, Petroline goes ahead, confident that it will begin building by the middle of next year (2008). Meanwhile, the iPayipi Consortium applies for a licence from Nersa to build a (different) pipeline from Durban to the Reef, confident that it, too, will get a licence. Then the Cabinet steps in and says Transnet Pipelines can build a new line from Durban to the Reef (ignoring Nersa's role in the process) and the DME says, in effect, "tough luck to iPayipi". But, hang on, what if iPayipi does get a licence from Nersa? Will the Cabinet step in to stop it, as the initial DME reaction seemed to infer? Will an iPayipi pipeline be viable if there is already an expanded Transnet pipeline in place between Durban and the Reef? And what about this for a thought: Could it be that the Petroline project, being backed by black women (Women in Oil and Energy South Africa), has an inside track? Could the fact that iPayipi, despite its name, has a predominantly male South African Indian and South African white complexion, have scuppered its chances? Surely not. And, what if the Mocambican Government approves Petroline's plans and the South African Cabinet does not?

1 comment:

Anonymous said...

Now here is what makes this all the more interesting.
1. Dear Trevor promises Sasol there will be no windfall tax. In fact Government 'encourages' Sasol's investment in new plant inland. (From tax to subsidy via one short commission)
2. A few days later that genius in DME Gumede says that iPayipi played and lost - bad luck. The DME DG tried damage control but unfortunately nobody believes him.
3. This means that Petronet are preferred and of course you understand how tight Sasol and Petronet are. Just check the deal they have with the gas line inland to Durban. Again blocking use for inland movement from the coast.
4. Coastal refiners will be held hostage as to how much fuel they can move inland - Sasol's product gets put to bed and Petronet control the line for their mates in Secunda.
5. Who do you think really backs the Petroline consortium? Don't be suprised if it is Sasol. Let the Maputo line be built and it is a natural outlet for Sasol's excess production from any new plant. The fact that they currently export fuel north when the inland market is short beggars belief!
6. So the merger with Engen was kicked out. Sasol don't lie down that easily. And Gautengers will continue to pay too much for their fuel based on the current pricing mechanism. If I was Shilowa I would be hopping bloody mad.