/ 1 September 2006

Nersa grants piped-gas licence to Sasol

The National Energy Regulator of South Africa (Nersa) has issued the first licence to Sasol Gas to construct gas-distribution pipelines — in Germiston’s Roodekop area — Nersa said on Friday.

”The issuing of the licence to Sasol Gas is a milestone decision for the energy regulator,” spokesperson Nhlanhla Cebekhulu said in a statement.

He said this is the first licence to be issued for the piped-gas industry since the regulator started regulating the piped-gas and petroleum pipelines industry in November 2005.

Sasol Gas was granted the licence to construct natural-gas pipelines with an average operating pressure of 6,25 bar gauge and a maximum operating pressure of 7,5 bar gauge.

The company should also construct a pressure-reduction station to reduce the operating pressure from 30 bar gauge to 6,25 bar gauge at a specific location, Cebekhulu said.

”The construction licence is valid for a period of 18 months, commencing on September 1 2006 and expiring on 29th February 2008, unless revoked …

”Thereafter it is expected that an operating licence will be issued,” he said. — Sapa