Energy gurus meet on jet fuel pinch
August 6, 2009
By Justin Brown and Slindile Khanyile
Transnet and Sasol are absolving themselves of responsibility for the jet fuel shortage that hit OR Tambo International Airport this week as Minister of Energy Dipuo Peters meets today with stakeholders to address the looming crisis.
The minister will meet in Pretoria with Transnet Pipelines, the SA Petroleum Industry Association, Airports Company South Africa (Acsa) and various oil companies.
Bheki Khumalo, a Department of Energy spokesman, said: "The minister will ask everyone what happened and together with them will put together a plan to avoid the repeat of the shortage in the lead-up to the 2010 soccer World Cup, during the event and thereafter."
Meanwhile, Engen said yesterday that it would need to import some of the jet fuel to meet the demand for next year's Fifa World Cup because its production capacity would not be able to deliver all the required supply.
Herb Payne, a spokesman at the Engen refinery, said that estimated demand on Engen would roughly double during the month-long tournament to between 5 million and 6 million litres a day.
Engen's current production capacity is 3 million litres a day.
Payne said exact figures were yet to be computed and that jet fuel now cost R5 a litre. Importing jet fuel would increase borrowings slightly as it had to be paid for in advance, unlike crude oil, which was paid for only when it arrived.
"The more significant challenge will be to get the logistics right to supply the airport tanks all over the country.
"Engen foresees that the pipeline to Gauteng will be fully subscribed and that extra trucks and rail cars will need to be used," he said.
"In this respect, the Department of Energy is working on a plan to get all the players that are involved in getting the logistics to work around a table to get a common understanding and integrated solution," said Payne.
Aviation sources yesterday put the supply problems down to the Natref refinery in Sasolburg, which is owned by Sasol and Total, in addition to Transnet Pipelines and the fuel firms at the airport in Johannesburg.
In another development, Rich Mkhondo, the chief communications officer at the 2010 Fifa World Cup Local Organising Committee, said: "The (committee) has held discussions with the government on this matter. The departments of transport and public enterprises are both engaging with Acsa and other airports on this.
"The issue is about securing sufficient reserves of jet fuel as a contingency, should normal supply be affected.
"The organising committee is confident that the government will give sufficient attention to this matter."
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