Transcript Chairperson Welcome remarks 12 November 2013

Welcome
Remarks
12 November 2013
Fast facts
• The South African petroleum industry accounts for:
- 6.48% contribution to the national GDP;
- R267 billion in turnover;
- R54 billion in duties and levies;
- R6 billion in capital expenditure;
- R4 billion in annual payroll;
- more than 100 000 jobs (direct and indirect employment);
- R3 billion in income tax; and
- R99.5 million spent by SAPIA member companies on
corporate social investment projects during 2012.
Strategic initiatives
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Clean Fuels
Climate Change
Health, Safety, Security and Environment
Regulated Price Elements
Security of Supply
Transformation
SAPIA Members
Integrated
Members
1. BP Southern
Africa
2. Chevron South
Africa
3. Engen Petroleum
4. PetroSA
5. Sasol Limited
6. Shell South Africa
7. Total South Africa
Non Integrated Members
Biofuels
manufacturers
1. Mabele Fuels
Fuel wholesalers
LPG wholesalers
1. AEMCOR
2. Afric Oil
3. Altivex 529 t/a Elegant Fuel
4. Bahlaloga Technology’s
5. Brent Oil
6. Camel Fuels
7. Gulfstream Energy
8. Khulaco
9. KZN Oils
10. Makwande Energy Trading
11. Omphile’s Trading CC t/a Siyanda
Petroleum
12. Royale Energy
1. Easigas
2. Oryx Oil South
Africa
3. Totalgaz
2013 SAPIA Board of Governors
- Christian des Closières (SAPIA Chairperson)
- Nizam Salleh (SAPIA Vice Chairperson)
- Thandi Orleyn
- Nobuzwe Mbuyisa
- Olivier Nechad
- Zahir Williams
- Nosizwe Nokwe-Macamo
- Pat Mdoda
- Maurice Radebe
- Bonang Mohale
Total South Africa
Engen Petroleum
BP Southern Africa
Chevron South Africa
Easigas
Mabele Fuels
PetroSA
Royale Energy
Sasol Oil
Shell South Africa
Board of Governors Committees
1. Advisory Committee on Climate Change
2. Clean Fuels Task Team
3. Communication Committee
4. Economic Regulation Committee
5. Fuel Specifications Committee
6. Legal Committee
7. Non Integrated Members Forum
8. Petroleum Industry Engineering and Environment Committee
9. Refinery Managers Forum
10. Security Committee
11.Transformation Committee
SAPIA staff members
Security of Supply Seminar
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SAPIA offer many services, today we are offering seminar targeting members
and other stakeholders
Seminar present an opportunity to learn from experts in the industry
Opportunity to demonstrate SAPIA alignment with the National Development
Plan.
SAPIA support maintaining and expanding infrastructure to facilitate economic
growth.
SAPIA members have been investing in a variety of infrastructural areas such
as storage infrastructure, logistical infrastructure and infrastructure near ports.
Wood Mackenzie in the “UK Downstream Oil Infrastructure” study concluded
that:
⁻ Low returns and weak demand growth has led to a lack of discretionary
investment in UK downstream infrastructure and industry consolidation
⁻ Most investment has been to comply with regulatory requirements (e.g. HSE,
fuel quality standards, petrol vapour recovery), with a number of terminals
closing due to the amount of investment required to achieve compliance
⁻ Limited investment has been made by independent storage companies and
traders but these have been largely confined to coastal import terminals rather
than inland logistics
Security of Supply Seminar …..
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Increasing regulatory constraints (including those relating to planning consents,
RTFO costs, and ‘Containment Policy’) are forming a barrier to investment in
new infrastructure
Capital budgets are constrained and expenditure required for ‘stand still
'investment limits the potential for discretionary spend
The main incentive to invest is potential financial return
Other incentives may be required to ensure future supply resilience (ability of
the supply infrastructure to deal with unexpected disruption at one or more
locations)
The key issue is how to sustain the current logistical capacity given the lack of
investment over a long period of time
While the Containment Policy mandates investment in terminals, changes in
land use/planning policy threaten the continued operation of some existing
facilities
The conclusions by Wood Mackenzie may be relevant to South Africa!
The whole day is dedicated to downstream fuels infrastructure.
End
Thank you