Bidvest, Petredec open LPG terminal

GASSING UP

COMMISSIONING • A MAJOR NEW JOINT-VENTURE LPG TERMINAL IN SOUTH AFRICA WILL HELP OPEN UP THE REGION TO WIDER USE OF THIS RELATIVELY CLEAN FUEL

BIDVEST TANK TERMINALS and Petredec have commissioned their new LPG storage facility in Richards Bay, South Africa. The joint-venture facility offers 22,600 tonnes of storage capacity in four mounded tanks, each 60 metres long and 16 metres in diameter. The facility is the largest pressurised LPG import terminal in the region and will guarantee year-round availability of LPG supplies to South Africa and neighbouring countries.

“The project, which broke ground in October 2018, has come in on budget and with only

CONSTRUCITON OF THE LPG TANKS AT RICHARDS

BAY WILL SECURE SUPPLY IN SOUTH AFRICA slight delays in its finalisation as a result of travel and other restrictions associated with the Covid-19 pandemic,” says David Leisegang, managing director of Bidvest Tank Terminals. “Despite locking down the site for 45 days to ensure the safety of staff, we are not far off our anticipated commissioning date, which is a testament to the hard work of all involved.”

The new terminal received its first parcel of LPG in early October, delivered on a Petredec gas carrier from the Gulf of Mexico. The LPG was then loaded onto tank trucks for distribution by road; the site’s dedicated road tanker and railcar loading facilities, operating around the clock, will ensure constant supply throughout southern Africa and is expected to have a positive impact on the South African economy.

OPENING UP THE MARKET “We are tremendously proud that we have reached such a significant milestone, both for the project and for the supply of LPG to South Africa,” says Lee Furby, managing director of Petredec, whose local subsidiary Petregaz is handling wholesale distribution. “LPG is an unmatched source of energy for water, space and food heating applications, and is increasingly used in gas-to-power applications. However, its adoption in Southern Africa has, until now, been hampered by unreliable supply. The commissioning of the facility – also capable of seaborne re-exports to neighbouring countries – will unlock previously unattainable economies, resulting in lower supply prices to the local market and dependable, year-round access to LPG.”

“It is more important than ever for South Africa to secure a reliable and cost-effective energy mix to drive real GDP growth in order to create employment and prosperity for all,” adds Mpumi Madisa, CEO of the Bidvest Group. “We anticipate that the stability of supply made possible by this R1 billion ($63m) facility will stimulate the expansion of the LPG value chain, thus creating myriad opportunities for small, micro and medium enterprises and ultimately contributing to job creation.”

The terminal is expected to be able to deliver 200,000 tonnes of LPG per year into the region, equivalent to half of current LPG usage in South Africa. It is located at Bidvest’s existing terminal in Richards Bay, one of three sites in the country that offer a total of 868,000 m³ for chemicals, liquefied gases, refined products, base oils, lube oil and edible oils.

Petredec, a major LPG trader and shipping company, has recently been investing further in South Africa; over the past two years it has acquired the fuels wholesaler Jubane and distributor Oilco, which this past September it brought together in a new subsidiary, Petrefuel, to operate alongside its LPG distributions under the Petregaz brand. www.bidvest.co.za www.petredec.com