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Karoo action group not funded by Rupert

Cape Town - The Treasure the Karoo Action Group (TKAG) this week denied that it was being financed by business magnate Johann Rupert.

Jonathan Deal, national coordinator of TKAG – the organisation which, on behalf of various interest groups, is campaigning against oil companies’ plans to exploit shale gas in the Karoo by means of hydraulic fracturing (fracking) – said that in its liaison with local and international businesspeople the group had been surprised to discover that there was a perception that TKAG was being funded by Rupert, and therefore had no need for further financial assistance.

Rupert has family interests in Graaff-Reinet and environs, and is also sharply opposed to oil company Shell’s plans to explore for shale gas in the Karoo.

According to Deal, TKAG is independently funded, and has never approached Rupert for help. But he said the organisation would like to discuss collaboration.

Rupert has previously declared himself prepared to take legal steps to prevent Shell using fracking to extract shale gas in the Karoo.

Deal said that TKAG was budgeting for costs of at least R10m to proceed with its campaign.

On Friday, in a debate at the University of Cape Town’s postgraduate business school, he said South Africa is the first country in the world to put a moratorium on fracking even before any exploration rights have been granted.

According to Deal, fracking is unconsitutional and incompatible with sustainable development and sustainable land use.

Shell South Africa chairperson Bonang Mohale added to the debate, saying that to date none of the 800 000 gas and oil wells that Shell had sunk across the globe had collapsed or exploded. Over the past 60 years during which fracking has been done, said Mohale, underground cracks introduced to allow the gas to escape have so far not reached the surface.

Deal said renewable energy offers greater long-term job creation potential than the envisaged gas development.

Mohale said Shell aimed to use most of the gas it would extract for power generation, as well as to supply PetroSA with gas for its gas-to-fuel plant in Mossel Bay.

Deal said 3% to 7% of natural gas is lost from the time it is extracted to when it is sold to the consumer.

Mohale pointed to the 35% loss of electricity in transmission from Mpumalanga to the Eastern Cape.

- Sake24

For business news in Afrikaans, go to Sake24.com.


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