By Staff Reporter
The Portfolio Committee on Mineral and Petroleum Resources is concerned about the “insufficient” strategic fuel reserves available to provide uninterrupted service in cases of emergency.
This week, the committee conducted a two-day oversight visit to the Strategic Fuel Fund (SFF) in Saldanha to ensure it has sufficient petroleum reserves to keep the supply uninterrupted, and Astron Energy Refinery in Milnerton to assess its readiness for the 2027 clean fuels deadline.
During the visit to SFF, the committee inquired about the storage tanks refurbishment project, including timelines, service providers and updates on the progress of constructing LPG loading facilities. It also heard about SFF’s current capacity and capabilities in handling oil spills, particularly in the context of its partnership with the Oil Pollution Control agencies in Africa.
“We are not satisfied with the amount of strategic fuel reserves that the SFF is keeping in stock. As a committee, we believe it is pointless to refine if we do not have sufficient storage or if the limited storage available is not optimally utilised,” said committee chairperson Mikateko Mahlaule.
SFF and PetroSA acting CEO Sesakho Magadla highlighted the complexity of increasing crude oil kept in storage as the market was not conducive.
“The market is currently depressed; we are only using two of the six tanks for our reserves. Negotiations are at an advanced stage with an international company that will rent one tank,” said Magadla.
Another challenge raised by Magadla was split powers, as the entity still straddled two departments – the Department of Mineral and Petroleum Resources and the newly formed Electricity and Energy Department. She mentioned the need for streamlining to avoid confusion and delays in approval processes.
Mahlaule said that during the next meeting with the Central Energy Fund (CEF), the committee would request a comprehensive presentation on the CEF’s emergency response plan to keep the supply going.
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