Publications
Partners
Cape Town - The government has promoted a proposed new black-empowered fuel storage and distribution facility in Cape Town to “a strategic project” to assist with the country’s security of fuel supply.
In a statement released by Musiwandile Mseleku, CEO of Burgan Cape Terminals, he said his company – which plans a diesel and petrol project in Cape Town harbour – is “enormously encouraged” that government has included its project under Operational Phakisa.
This operation, which means “hurry up” in Sesotho, was born when President Jacob Zuma visited Malaysia on a state visit in 2013 where he was introduced to that country’s Big Fast Results Methodology, through which the Malaysian government achieved rapid economic transformation focused on economic growth and poverty upliftment.
According to Minister in the Presidency Jeff Radebe, Operational Phakisa involves a “results-driven approach, involving setting clear plans and targets, ongoing monitoring of progress and making these results public”.
Mseleku said on Tuesday: “This (honour) speaks directly to the facility’s ability to assist with security of fuel supply in the region as well as the role it will play in opening a previously closed market of emerging black-owned independent fuel supplies.
“Our government has been strategising how to further secure fuel supply and we are pleased to be part of the solution,” he said.
He said the Burgan facility would address the need for greater security of supply that would result from expanded stock storage and emergency import capacity. The facility could be used to bolster supplies to the Ankerlig OCGT power station at Atlantis, north of Cape Town.
READ: Aus-SA venture could ease Eskom troubles
Mseleku said: “We are all aware of the challenges around electricity supply and we would be especially proud if our facility could assist in helping to keep the lights on and electricity flowing,” noting that the construction of the storage facility would commence once its environmental licence has been approved.
The additional storage facility has been controversial as rival company Chevron – which Burgan says controls the supply of fuel in the Western Cape – objected to granting Burgan a licence if it were used to bolster the import of diesel and petrol.
READ: Chevron ups ante in diesel storage wars
Chevron has also objected to the granting of an environmental licence to its rival. Burgan said that “this is despite the fact that extra storage capacity could be beneficial to local oil companies, including Chevron, to increase the availability of strategic petroleum stocks in the Western Cape”.
Chevron said mass supply of imported fuels to the new facility could ultimately shut down its Milnerton refinery and storage plant.
Nevertheless, Nersa in December gave Burgan the green light for the plant.
READ: Burgan gets licence approval
Burgan said on Wednesday: “We are of course disappointed that a global oil major would object to a project that has so many positive benefits for both the Western Cape and South Africa. Burgan is of the opinion that Chevron is looking at the glass half empty, instead of exploring the opportunities that new storage capacity would unlock in the province as well as for Chevron as a business.”
Burgan Cape Terminals, a partnership between Thebe Investment Corporation, broad-based black empowerment company Jicaro and Netherlands-based international terminal operator VTTI, aims to invest R650m during the first two years of development.
NOW READ: Chevron to appeal Burgan ruling
