If construction of the new tank farm by Oiltanking Grindrod Calulo (OTGC) starts this year the first phase should be completed by 2018.
Engineering News reports Grindrod CEO Alan Olivier as saying the project had been delayed “owing to the fact that the tariff model of the National Energy Regulator of South Africa (Nersa) did not work for projects requiring new capital out-lay”.
He said there were “new tariff
regulations in the works for May this year, which should allow for the construction of this facility”.
The new 230 000 cubic metre facility will cost R2.9 billion “and will be used for the storage of all petroleum products with the exception of crude oil and liquefied natural gas”.
Olivier said land was available to expand the facility to 700 000 cubic metres if required.
Construction of the new facility will pave the way for the eventual decommissioning of the existing one in the Port Elizabeth Harbour.
An environmental impact assessment (EIA) is underway for the de-commissioning of the existing facility.
Article published from Metro Minutes by Patrick Cull”.