Thursday 10 October 2013

SOUTH AFRICA: Construction Starts on South African LPG Project

Construction has officially started on South Africa's over US$ 130 million Saldanha LPG import and storage terminal, the Sunrise Energy Terminal. The project is aimed at countering LPG shortages in the Western Cape. It also aids in dismantling what Sunrise Energy MD Barthlo Harmse describes as a monopolized LPG supply chain market. Currently, LPG is transported from Secunda or Richards Bay to the Western Cape, which grows increasingly uneconomical.

Barthlo further stated that "the Sunrise Energy Terminal will be an open-access facility, meaning its infrastructure can be accessed by qualifying wholesale distributors, importers, traders or industrial LPG users, breaking the existing cartel and enabling new producers to enter the market".

Market contracts already awarded include the EPCm Jacobs Matasis and the marine engineering contract to consulting engineers PRDW, with Sunrise expecting up to 70% local spend.

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