PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERALS AND ENERGY - PowerPoint PPT Presentation

About This Presentation
Title:

PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERALS AND ENERGY

Description:

PRINCIPLE NOT OPPOSED - PARTICIPATED IN THE PROCESS(SEVERAL ... QUAGGA. 457,2. N. RUSTENBURG. MAGDALA. NORTH - WEST. MPUMALANGA. KWAZULU / AIRPORT. VRYHEID ... – PowerPoint PPT presentation

Number of Views:43
Avg rating:3.0/5.0
Slides: 31
Provided by: drawing
Category:

less

Transcript and Presenter's Notes

Title: PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERALS AND ENERGY


1


PRESENTATION TO THE PORTFOLIO COMMITTEE ON
MINERALS AND ENERGY PETROLEUM PIPELINES
BILL B22-2003 BY CHARL MÖLLER JOHN
MORGAN 4 JUNE 2003
1
2

PETROLEUM PIPELINE BILL CONTENT OF
PRESENTATION 1. PETRONETS VIEW ON REGULATION
2. NATIONAL PORTS AUTHORITY COMMENT ON
BILL 3. PETRONET SPECIFIC COMMENTS/QUERIES/
SUGGESTIONS ON BILL
2
3
  • PETROLEUM PIPELINE BILL
  • PETRONETS VIEW ON REGULATION
  • PRINCIPLE NOT OPPOSED - PARTICIPATED IN THE
    PROCESS(SEVERAL WORKSHOPS) SINCE 2000.COMMENTED
    ON DRAFT BILL IN 2001.
  • INTERNATIONAL NORM
  • PRESENT COMMERCIAL REGULATION AND AGREEMENTS HIGH
    RISK
  • SETS STANDARDS
  • OFFERS PROTECTION AGAINST POSSIBLE UNFAIR
    COMPETITION FROM FUTURE PIPELINES OF LOWER
    STANDARDS
  • CERTAINTY ON RULES FOR FUTURE PUBLIC AND PRIVATE
    INVESTMENTS

3
4
  • PETROLEUM PIPELINE BILL
  • PETRONETS VIEW ON THE BILL
  • MAIN IMPACT COMMERCIAL ASPECTS OF PIPELINING
  • TARIFFS, CONDITIONS OF CONVEYANCE, FINANCIAL
    REPORTING, ETC.
  • TECHNICAL, HEALTH, SAFETY, ENVIRONMENT COVERED IN
    VARIOUS PIECES OF EXISTING LEGISLATION
  • BUT OPERATING COMPETENCIES NOT ADDRESSED IN THE
    BILL

4
5
  • PETROLEUM PIPELINE BILL
  • PETRONETS VIEW ON THE BILL
  • STRATEGIC ROLE OF PETROLEUM PIPELINES IN SA
    AKNOWLEDGED
  • SUSTAINABLE BUSINESS ENVISAGED
  • LOW RISK OF REGULATION BEING DISRUPTIVE TO
    PRESENT PIPELINE NETWORK OR LEADING TO
    UNSUSTAINABLE SITUATION
  • WILL ENHANCE THE COMMERCIAL MANAGEMENT AND FUTURE
    DEVELOPMENT OF PIPELINE INFRASTRUCTURE
  • RULES SPELT OUT
  • INVESTMENT, RETURNS, TARIFF POLICY

5
6
  • PETROLEUM PIPELINE BILL
  • NATIONAL PORTS AUTHORITY COMMENT
  • DEGREE OF OVERLAP BETWEEN THE POWERS OF THE
    NATIONAL PORTS AUTHORITY IN TERMS OF THE NATIONAL
    PORTS AUTHORITY BILL (B5-2003) AND THE PETROLEUM
    PIPELINES AUTHORITY
  • CONSTRUCTION AND OPERATION OF MARINE LOADING AND
    STORAGE FACILITIES
  • SBM / BERTHS / ETC ?
  • THIS POSITION TO BE CLARIFIED

6
7
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 20 - Conditions of licence
  • 20 (1) (d) This clause in Petronets opinion is
    restrictive on existing pipelines and has the
    potential to create inefficiencies and artificial
    capacity constraints within an existing
    integrated pipeline network. It will be far more
    efficient to convey refined products through a
    crude oil pipeline which has surplus capacity
    then to provide additional refined pipeline
    capacity.
  • Optimal utilisation of very expensive (Capital
    Intensive) existing pipeline capacity must be
    allowed for. Not only under emergency
    conditions.

7
8
  • PETROLEUM PIPELINE BILL
  • PETRONET PIPELINE NETWORK DEVELOPMENT
  • 1965 - MULTI PRODUCTS PIPELINE (DJP)
    DURBAN JOHANNESBURG
  • 1970 - CRUDE OIL PIPELINE (COP)
    DURBAN COALBROOK
    (NATREF) KENDAL
  • 1973 - MULTI PRODUCTS PIPELINE (EXTENSIONS) PR
    ETORIA, BENONI, KLERKSDORP
  • - AVIATION TURBINE FUEL PIPELINE
    (AVTUR)


    COALBROOK JOHANNESBURG INTERNATIONAL
    AIRPORT
  • 4. 1978 - NEW MULTI PRODUCTS PIPELINE (DWP)
    DURBAN ALBERTON (VIA SECUNDA)
    CRUDE OIL RETURN PIPELINE (KDC) KENDAL
    VREDE


8
9

PETROLEUM PIPELINE BILL PETRONET PIPELINE NETWORK
DEVELOPMENT 5. 1993 - MULTI PRODUCT PIPELINE
EXTENSION LANGLAAGTE -
RUSTENBURG 6. 1995 - NETWORK RECONFIGURATION
(COP/DWP) TO INTRODUCE GAS SECUNDA
DURBAN 7. 2002 - UPGRADE CRUDE OIL PIPELINE
CAPACITY DURBAN COALBROOK (5 ADDITIONAL
PUMP STATIONS) 8. 2004 - DEBOTTLE NECK MULTI
PRODUCTS PIPELINE SASOLBURG - ALRODE


12
10
1965 - MULTI PRODUCTS PIPELINE (DJP) DURBAN
LANGLAAGTE
PPT-0591
11
1970 - CRUDE OIL PIPELINE (COP) DURBAN CBK
KENDAL
PPT-0592
12
1973 - MULTI PRODUCTS PIPELINE (EXTENSIONS)
PRETORIA, BENONI, KLERKSDORP AVIATION TURBINE
FUEL PIPELINE (AVTUR) COALBROOK JOHANNESBURG
INTERNATIONAL AIRPORT
PPT-0593
13
1978 - NEW MULTI PRODUCTS PIPELINE (DWP) DURBAN
ALRODE (VIA SECUNDA) CRUDE OIL PIPELINE (KDC)
KENDAL VREDE
PPT-0594
14
1993 - MULTI PRODUCT PIPELINE EXTENSION
LANGLAAGTE - RUSTENBURG
PPT-0595
15
1995 - NETWORK RECONFIGURATION (COP/DWP) SECUNDA
DURBAN
PPT-0596
16
2002 - UPGRADE CRUDE OIL PIPELINE CAPACITY
DURBAN COALBROOK (5 ADDITIONAL PUMP STATIONS)
GAUTENG
WALTLOO
GAUTENG
PRETORIA WEST
SECUNDA
RUSTENBURG
WITBANK
KENDAL
AIRPORT
SOUTH AFRICA
RICHARDS BAY
MPUMALANGA
TARLTON
LESOTHO
NORTH - WEST
DURBAN
LANGLAAGTE
ALRODE
CAPE TOWN
ø406,4
MEYERTON
( 16" )
POTCHEFSTROOM
SECUNDA
ø457,2
( 18" )
KLERKSDORP
COALBROOK
SASOLBURG
STANDERTON
WILGE
AFRICA
ø457,2
VOLKSRUST
( 18" )
FREE
VREDE
MAGDALA
QUAGGA
INGOGO
STATE
VRYHEID
NEWCASTLE
KROONSTAD
SCHEEPERSNEK
FORT MISTAKE
KWAZULU /
BHT
BETHLEHEM
MAHLABATINI
VAN REENEN
NATAL
LADYSMITH
EMPANGENI
RICHARDS BAY
REFINED PRODUCTS
LESOTHO
MOOIRIVER
CRUDE OIL
ø323,8
ø406,4
( 12" )
GAS
( 16" )
INDIAN
ø457,2
AVTUR
( 18" )
HOWICK
OCEAN
DUZI
DOUBLE PUMP STATION
PUMP STATIONS
HILLCREST
MNGENI
DELIVERY STATIONS / METERS
DURBAN
INTAKE STATIONS
PPT-0597
17
  1. - DEBOTTLE NECK MULTI PRODUCTS PIPELINE
  2. SASOLBURG - ALRODE

GAUTENG
WALTLOO
PRETORIA WEST
RUSTENBURG
WITBANK
KENDAL
AIRPORT
MPUMALANGA
TARLTON
LANGLAAGTE
ALRODE
JAMIESON PARK PIGGING STATION
( 16" )
SASOLBURG
NIGEL
SECUNDA
( 18" )
COALBROOK
NATREF
STANDERTON
NEW PIPELINE
WILGE
EX COAST
VREDE
ø457,2
VREDE T PIGGING STATION
( 18" )
FREE
VREDE
T
MAGDALA
QUAGGA
STATE
NEWCASTLE
KROONSTAD
FORT MISTAKE
KWAZULU /
BHT
N
BETHLEHEM
VAN REENEN
NATAL
LADYSMITH
RICHARDS BAY
REFINED PRODUCTS
LESOTHO
MOOIRIVER
CRUDE OIL
ø323,8
ø406,4
( 12" )
PROPOSED CHANGES
( 16" )
INDIAN
REQUIRED CHANGES LDC
HOWICK
OCEAN
DUZI
DOUBLE PUMP STATION
PUMP STATIONS
HILLCREST
MNGENI
DELIVERY STATIONS / METERS
DURBAN
PPT-0574
18
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 27 - Health, Safety, Security and
    Environment
  • The Bill is lacking with respect to the issue
    of pipeline security. Petronet currently
    experiences major difficulties in managing the
    activities of 3rd parties both in and
    adjacent to its pipeline servitudes.
    Encroachments by informal developments as
    well as the increasing number of encroachments
    inadvertently approved by various local
    authorities pose a major risk to health and
    safety the environment as well as the
    disruption of the essential services.
    Consideration should be given to including
    enabling legislation in this Act

19
19
  • PETROLEUM PIPELINE BILL
  • SECURITY OF PIPELINES
  • PIPELINES DESIGNED, CONSTRUCTED, OPERATED AND
    MAINTAINED IN ACCORDANCE WITH PROVEN
    INTERNATIONALCODES ARE SAFE AND SECURE BURRIED
    INSTALLATIONS
  • OPERATIONS
  • ADEQUATE MONITORING AND CONTROL SYSTEMS
  • INFRASTRUCTURE INTEGRITY
  • PREVENTIVE MAINTENANCE
  • SERVITUDE MANAGEMENT

20
20
  • PETROLEUM PIPELINE BILL
  • SECURITY OF PIPELINESSERVITUDES
  • HIGH RISK FROM 3RD PARTY ACTIVITY
  • PHYSICAL DAMAGE
  • ILLEGAL ENCROACHMENT/ACTIVITIES IN SERVITUDES
  • - COMPLEX AND TIME CONSUMING PROCESS TO
    STOP OR REMOVE
  • ACTIVITIES ADJACENT TO SERVITUDE AFFECTING
    INTEGRITY OF PIPELINE
  • PIPELINE OWNER HAS NO JURISDICTION BEYOND THE
    SERVITUDE LIMIT

21
21
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 34 - Prohibition of agreements contrary
    to Act 
  • 34 (1) It is not clear from this clause whether
    existing agreements will be dealt with in terms
    of 34 (2) or 20 (1) (f) (ii).
  • EXAMPLE
  • Tariff link agreement - Petronet/Natref
  • 3 Year Termination Clause
  • Current Conveyance Agreement Petronet/SA Oil
    Industry members

22
22
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  •  Section 22 - Term of Licence
  • 22 (5) It is recommended that this clause be
    amended to make provision for the transfer of a
    licence in the case of State owned entities. A
    possible mechanism for this is the Transnet Legal
    Succession Act.
  • EXAMPLE TRANSNET (THE LEGAL ENTITY)WILL NEED TO
    HOLD THE LICENCE. NOT PETRONET - THE
    PIPELINE BUSINESS ..

16
23
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Definitions
  •   Pipeline - This is a very broad definition
    based on product type.
  • Consider other possible parameters such as
    diameter, length, pressure, etc
  • Section 10 - Decisions of Authority
  • Recommend theright of appeal be included as
    per 25 (3).
  • Section 15 - Licences
  •   15 (1) Recommend person be replaced with
    owner.
  • This will clear up any uncertainty as to
    who the licencee is. 

24
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 16 - Application for licence
  • 16 (2) (c) Given the importance it is
    considered essential that applicants also be
    required to demonstrate their Operating
    abilities.
  •    16 (3) It is requested that the following be
    considered.
  • The Authority will at all times adhere to the
    requirements of the Access to Information Act
    in terms of obtaining/using/controlling and
    making public any information obtained from any
    applicant .

8
25
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 18 - Particular Information to be
    supplied by the applicant
  • 18 (a) This clause is unacceptable unless 
  • i)     no additional costs are incurred by the
    licensee, or
  • ii)    the authority makes provision for such
    additional costs when approving tariffs.
  •  

9
26
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 20 - Conditions of licence
  • 20 (1) (f) (i) In order to comply with this
    requirement customer needs will have to be
    defined within the Act. Capacity not the only
    consideration in a pipeline.Consideration to be
    given to Technical and product compatibility,
    minimum batch (slug) sizes, frequency of
    utilisation, etc. Suggested change is to include
    the following
  •    to their needs and within the
    operational constraints of the pipeline
    system/network.

13
27
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 20 - Conditions of licence
  • 20 (1) (r) (s) Why tariffs would be set by the
    Authority for petroleum pipelines and only
    approved for storage facilities is not
    understood.
  • 20 (2) (a) to ( C) Should the right to appeal
    as allowed for in 25 (3) (2) not also be included
    in 20 (2)?.

14
28
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 21 - Non-discrimination
  • The terms objectively justifiable and
    identifiable are inadequately descriptive
    and need to be expanded to ensure compliance
    with this requirement

15
29
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 24 - Revocation of licence on
    application
  • 24 (2) It is unreasonable to expect an
    uneconomical business to continue for 12 months
    after notice.
  • Suggest that the period of notice on licensed
    activities be reduced from 12 months to 3 months
    in the case of uneconomical services and 6
    months for any other reason

17
30
  • PETROLEUM PIPELINE BILL
  • SPECIFIC COMMENT/QUERIES/SUGGESTIONS
  • Section 27 - Health, Safety, Security and
    Environment
  • This clause has indeterminable financial and
    legal liabilities for an undefined period. In
    order to facilitate and encourage investment,
    parameters will need to be fixed or limited.
  •  

18
Write a Comment
User Comments (0)
About PowerShow.com