Johannesburg - Liquefied petroleum gas (LPG) shortages in the Western Cape have prompted LPG suppliers in the province to resort to more expensive imported gas in order to maintain supplies to customers.
The shortages follow national oil company PetroSA’s decision to halt LPG production at its Mossel Bay refinery.
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In a statement yesterday, PetroSA said in order to extend the lifespan of the Mossel Bay refinery, its operating model had changed. “A direct consequence of this is that we need to reduce the throughput of the gas feedstock into the refinery,” PetroSA said.
The company said the change in operating model affected LPG production at the refinery. “In recognition of this, PetroSA has, therefore, timeously informed all our customers of the need for them to import LPG. To ensure that security of LPG supplies is not threatened, PetroSA is supporting various industry initiatives and has also put plans in place to mitigate against this possibility,” it said.
Mark Radford, the head of LPG at gases and welding products supplier Afrox, on Friday confirmed the LPG shortages in the Western Cape. He said the shortages had been going on for three months.
Radford said the company, which is one of South Africa’s largest LPG distributors, did not directly import the gas but bought the product from one of the traders who imported it.
“Buying imported LPG is more expensive, but we have to do it anyway. PetroSA told us about their situation. We had discussions and understand their position,” he said.
Maintain supplies
Totalgaz, one of South Africa’s leading suppliers of LPG, is another company that relies on gas bought from importers in order to maintain supplies to its customer, according to national sales and marketing manager Estelle Steenkamp.
“The imported gas comes at a premium, but we are trying to hold on to our customers,” Steenkamp said on Friday.
Several of the LPG suppliers said reduced LPG output from Chevron South Africa’s refinery in Cape Town had worsened the gas shortages. Approached for comment on Friday, Chevron referred questions to the SA Petroleum Industry Association (Sapia).
Attempts to get comment from Sapia were unsuccessful.
LPG is a by-product in the oil refining process. Maintenance shutdowns at refineries, therefore, reduce availability. Unless supplies improve drastically, the LPG shortages are likely to worsen as the demand for the product traditionally spikes in winter. The tendency by households and businesses to stockpile exacerbates the shortages.
BUSINESS REPORT