LPG storage facility ushers in a new era
Construction of the 22 600-ton facility began in October last year and is scheduled for full commissioning, after a critical testing period, in the second half of 2020
THE billion rand Liquefied Petroleum Gas (LPG) storage facility being constructed at the Port of Richards Bay will usher in a new era for energy for the country.
This according to Bidvest Group CEO, Lindsay Ralphs who along with a number of delegates, celebrated the installation of the world’s largest LPG storage tanks in Richards Bay last week.
Construction of the 22 600-ton facility began in October last year and is scheduled for full commissioning, after a critical testing period, in the second half of 2020.
It is being developed by Bidvest Tank Terminals (BTT), a unit of the Bidvest Group and will store LPG on behalf of independent specialist Petredec which ships the fuel from the US and the Middle East.
‘The terminal is expected to increase the supply of LPG into the South African market by 200 000 tonnes, half of the country’s current consumption.’It will also further enable the export of the fuel to neighbouring countries.
‘We strongly believe this terminal will stimulate the expansion of the LPG value chain, thus creating myriad opportunities for small, micro and medium enterprises and ultimately contributing to job creation,’ said Ralphs.
KZN MEC for Economic Development, Nomusa Dube-Ncube said this facility will change the face of Richards Bay and the province.
‘The importance of this lies in the fact that the KwaZulu-Natal government has a vision of positioning the Richards Bay Industrial Zone as an infrastructure for oil and gas,’ Dube-Ncube said.
She further hailed the economic benefits that will emanate from the facility.
‘Statistics show that the oil and gas industry is employing an estimated 7 500 people and has an estimated annual turnover of over R196-billion.
‘Moreover, the industry apparently accounts for more than 90 000 indirect jobs in the distribution and marketing segment of the industry value chain,’ she said.
Petredec Managing Director, Lee Furby said benefits of LPG also include ‘lightening the load on a strained national electrical grid, reducing energy poverty and improving the health and safety of South Africans.
‘But up until now these benefits have been difficult to unlock, for the simple reason that the supply of LPG in South Africa has been inadequate and inconsistent. This facility will change that equation dramatically,’ he said.
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