Province cuts red tape to relieve gas shortage

Published Aug 28, 2015

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Mike Nkalane

THE Western Cape government’s red tape reduction unit’s intervention in removing bureaucracy hindering the import of liquefied petroleum gas (LPG) has resulted in extra gas being made available to address the current shortage.

Instead of the previous 12-hour limit vessels spent at Cape Town Port, Kaya Gas, the major LPG importers, has secured an additional four hours. Kaya Gas, together with the Transnet Ports Authority (TNPA), are working on a 24 hour gas docking.

Kaya Gas managing director George Tatham has hailed the intervention as a milestone in delivering much-needed gas.

“If it was not for this intervention aimed at removing bureaucratic regulations limiting hours gas spend in the port, we would not have imported about 6 500 tons of gas this winter to counter load shedding,” he said.

“Without these imports, the impact on the country’s economy would have been devastating. Because ships carrying gas come in for a fixed period, that results in little imports. But now that we have an additional four hours, we are able to import more gas.”

Economic Opportunities MEC Alan Winde said they have been liaising with TNPA to develop an interim solution to bridge the shortage of gas.

“Kaya Gas receives its gas from vessels which dock in the Cape Town Port and there is a 12-hour limit on the time they may spend in the port. Through the red tape unit’s intervention, they were able to secure an additional four hours in the port.

“This additional time will allow them to stock all of the retailers in their books, for the first time in several weeks.”

Winde said as the energy powers growth and job creation, without a stable supply of gas, the province’s economy would be “under threat”.

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