‘New players’ to enter petroleum storage sector

SEVERAL oil firms have asked the National Energy Regulator of SA (Nersa) to revoke their licences for petroleum storage facilities, mainly due to ownership changes, Nersa’s report for 2011-12 shows.

The revocation of the licences will pave way for new storage facility owners in the local petroleum industry.

The petroleum and liquid-fuels industry was criticised by the Department of Energy earlier this year for its slow transformation.

In her comments in the report, Nersa chairwoman Cecilia Khuzwayo said the petroleum storage facility industry was undergoing restructuring, whereby larger storage facilities — especially those connected to the Transnet pipeline system — were expanding capacity, while smaller storage facilities across the coun- try were being closed down or transferred to new owners.

She said the prospects of thirdparty access were improving as storage facility licensees submitted their allocation mechanisms and had their tariffs approved.

Nersa CEO Phindile Nzimande said oil firms were rationalising operations by transferring ownership of storage infrastructure at smaller depots to operators and resellers. “These new owners will now have to apply for licences in their own names. A number of smaller storage depots have been decommissioned. This has resulted in a number of applications to revoke licences that were previously granted to the oil companies,” Ms Nzimande said.

Chevron SA has asked Nersa to revoke its licences for storage facilities in Bloemfontein, Welkom and Queenstown. Ms Nzimande said this was due to a change in ownership of the facilities. Nersa also revoked BP Southern Africa’s licences for facilities in small airports such as Vryheid Airport, Umtata Airport and Polokwane International.

In the past financial year, Nersa received and analysed 133 tariff applications for petroleum storage and loading facilities, Ms Nzimande said.