Radebe has big plans for energy investment
ENERGY Minister Jeff Radebe wants at least $25-billion (R312-billion) of the $100-billion (R1.2-trillion) target for investment set by President Cyril Ramaphosa to come from the energy sector.
Ramaphosa set the investment target recently ahead of leading an investment roadshow to the United Kingdom. Special envoys have been appointed to spearhead the investment drive.
Radebe said at a media briefing ahead of his budget vote speech in parliament yesterday that between 2014 and 2016, $10.9-billion (R136-billion) was invested in the renewable energy independent producer programme‚ but this was not included in his $25-billion investment target. A further R56-billion will be invested over the next few years as a result of the recent signature of 27 independent power producer projects.
Radebe said this R56-billion formed part of the $25-billion the Department of Energy was aiming to achieve.
“We want to be ambitious,” Radebe said about the $25-billion target.
Helping achieve it would be the new bid windows for the independent power producer programme and investment in fuel tanks and infrastructure required for South Africa to become a major shale gas producer.
Also on the cards is the promoting of natural gas by designing and building infrastructure, and investment in improving refinery assets to meet higher global emission standards.
Radebe said he would be consulting with major players in the petroleum sector about a new refinery and wanted to finalise the way forward by September.
“[Refineries are] a significant contributor to the economy and the issue of the sustainability of the current refineries is of utmost concern.
“The refining sector is facing major challenges which include the provision of cleaner fuels‚ adhering to minimum emission standards and meeting the bunker fuel oil sulphur cap of 2020,” he said.
“Our refineries are not equipped to produce the latest fuels required by modern vehicle engines to reduce vehicle emissions and improve efficiency.”
Radebe said the gas finds in the Rovuma basin in Mozambique provided an opportunity for the region to benefit from gas resources. – TimesLIVE