Gas shortage on top of load shedding
Residents are reportedly struggling to obtain gas at several outlets across Springs.
According to the South African Petroleum Industry Association (Sapia), during winter months, the demand for liquefied petroleum gas (LPG) increases as consumers search for an alternative heating source that is not as costly as electricity.
LPG is produced during the refinement of crude oil or processing of Coal-to-Liquid (CTL) or Gas-to-Liquid (GTL).
As a result, the production levels of LPG are determined by the capacity of refineries that varies depending on the routine maintenance requirements of the facilities.
There are currently three crude oil refineries and two synthetic plants producing LPG in South Africa.
Sapia’s members supply the majority of LPG that is distributed in South Africa.
The LPG is sold directly to independent wholesalers who in turn market and distribute the product in bulk or in cylinders to customers.
During the winter months when there is an increase in demand for LPG, both wholesalers and distributors have a limited ability to import additional LPG to meet customer requirements.
In view of the predicted demand levels, independent terminal operators are developing an LPG import terminal in Saldanha Bay, which is expected to be fully operational towards the end of 2016.
This facility will facilitate the import of additional LPG to meet the local demand.
