Department of Mineral Resources and Energy
5 November 2019
A Draft Petroleum Resources Development Bill will soon be tabled in cabinet for approval.
The mineral resources and energy minister, Gwede Mantashe, confirmed this during an address at Africa Oil Week in Cape Town.
Speaking earlier this year at the 2019 Annual Investing in African Mining Indaba in Cape Town, the minister indicated that the proposed bill will provide “certainty to the upstream petroleum industry and stimulate growth and development in this sector”.
Following the withdrawal of the Mineral and Petroleum Resources Development Amendment Bill from parliament, the Mineral and Petroleum Resources Development Act will continue to apply to the mining sector while the draft bill will focus on the oil and gas sectors.
In the latest speech, the minister indicated that “gas to power technologies will provide the flexibility required to complement intermittent renewable energy and meet demand during peaking hours”.
Options under consideration include indigenous gas such as coal-bed methane and, ultimately, local recoverable shale and coastal gas.
The minister also pointed out that the Coega Special Economic Zone (SEZ) site, the first LNG import terminal, will lay the foundation for new Gas to Power plants.
Existing power plants will also be converted from diesel to gas.
The SEZ will also be used as a base for importing feedstock for the Gas to Liquids refinery in Mossel Bay.
The framework underpinning this programme will be announced soon.
The minister announced that an amendment to the Gas Act of 2001, as part of the programme, will be tabled in cabinet soon.
Meanwhile, in a statement, the department has announced that the price of petrol (both 93 ULP and LRP) is set to decrease by thirteen cents per litre with effect from 6 November 2019.
Lower oil prices are the main reason for the lower fuel price.
The average Brent Crude oil price decreased from 62.96 US dollars (USD) per barrel to 59.73 USD per barrel during the period under review.
Other price adjustments include:
• Petrol (both 95 ULP and LRP): thirteen cents per litre (13.00 c/l) decrease;
• Diesel (0.05% sulphur): sixteen cents per litre (16.00 c/l) decrease;
• Diesel (0.005% sulphur): fourteen cents per litre (14.00 c/l) decrease;
• Illuminating Paraffin (wholesale): twenty-three cents per litre (23.00 c/l) decrease;
• SMNRP for IP: thirty-one cents per litre (31.00 c/l) decrease;
• Maximum LPGas Retail Price: thirty cents per kilogram (30.00 c/kg) decrease;