Radebe Gives Update on Energy Sector

Department of Energy

The energy minister, Jeff Radebe, recently confirmed that the energy department was close to finalizing the review of the Integrated Resource Plan.

The minister was speaking at the Japan – Africa Public Private Economic Forum held in Johannesburg.

The minister also supported calls for new refining capacity in order to ensure security of supply of refined petroleum products.

Construction of new crude oil refineries and the upgrade of current refineries were feasible options to address the challenges as they create an “opportunity for the beneficiation of crude oil produced in the continent amongst others.”

The minister highlighted the benefits of a new refinery including eliminating the requirement for increasing imports of refined products, relieving congestion at Durban, diversifying crude oil sourcing and creating an opportunity to integrate cost effective strategic storage.

The minister also declared that there was a need for South Africa to “rapidly develop gas infrastructure across the value chain as we move towards energy mix that is both sustainable and clean.”

Meanwhile, the minister, speaking on energy efficiency at a public lecture in Nelspruit, announced that the draft Petroleum and Liquid Fuels Sector Codes have been drawn up.

The plan to align the Petroleum and Liquid Fuels Sector Transformation Charter to the Broad-Based Black Economic Empowerment Act and its codes of good practice was announced in September last year.

The retail audit at the petroleum retail level will also be completed.

The minister also referred to the envisaged new refinery indicating that a Public Private Partnership was preferred “with a strong participation of a crude oil producing partner” and majority South African ownership.

Sabinet Cape Town Office