Page 16 - AfrOil Week 29

AfrOil POLICY AfrOil

“In the period under review, there was no kero- Kenyan observers highlighted the significant
sene discharged at the port of Mombasa,” EPRA gap between diesel and kerosene prices under
director-general Robert Pavel was quoted as say- the new pricing regime, pointing out that traders
ing in the statement. now had an incentive to blend cheaper kerosene
Pavel was speaking around the same time into more costly diesel in order to maximise
that Kenya’s Petroleum principal secretary their profits.
Andrew Kamau drew attention to the lack of “Kerosene was not imported in the last cycle,
kerosene imports, saying that this development and it has been coming in reduced volumes
had made the latest fuel price hike more dra- before then,” Kamau told the Daily Nation in an
matic than it might have been otherwise. interview. “That is why we have that difference,
Kamau stated that he did not expect prices to which is only temporary and will normalise
remain at current levels for long. once we have more kerosene being imported
He made this statement after a number of at the current international crude oil prices.” ™

PROJECTS & COMPANIES
Renergen commences first-ever

auctions of LNG in South Africa

SOUTH AFRICA RENERGEN has launched South Africa’s first on the distribution of LNG from the first stage
ever auction of LNG by opening a bidding con- for long-haul trucking from filling stations along
test for future LNG production streams from the the Johannesburg-Durban section of the N3
Victoria Gas Project. highway. Once the second stage begins produc-
The company announced the start of the tion, the partners will expand LNG distribution
auction on July 20, saying it would accept offers along all of South Africa’s major highways.
for LNG and helium from its plant until August The company said earlier this year that it had
28. Potential buyers must demonstrate “an asset teamed up with Total to make a case for LNG
value or annual turnover equal to or in excess as an environmentally friendly fuel for long-
of ZAR2mn [$121.541],” it said in a statement. haul trucking. “The LNG displaces diesel usage,
The winners of the auction will take delivery reducing operating costs and helping customers
of LNG and helium from a new gas liquefaction meet their sustainability targets due to the signif-
unit that is under construction at the Victoria icantly lower greenhouse gas [GHG] emissions
Gas Project, which has been turning out CNG, from natural gas over diesel,” it said at the time
Renergen said. The LNG unit’s first stage is due The new LNG unit at Victoria Gas Project
to come on stream in 2021, and the second stage will process natural gas from Renergen’s fields
will follow suit in 2023, it said. near Welkom, Virginia and Theunissen in Free
Renergen is using the auction to sell surplus State. These fields contain nearly 90% methane
production from the Victoria Gas Project. It has and have an unusually high concentration of
already struck a deal with a unit of France’s Total helium, according to the company’s web site. ™

The Virginia Gas Project will use gas from fields in Free state to produce LNG (Image: Renergen)

P16 www. NEWSBASE .com Week 29 22•July•2020