Articles in Category: News

Burgan granted its independent fuel storage facility

The Western Cape Government Department of Environmental Affairs and Development Planning (DEA&DP) granted environmental authorisation to Burgan Cape Terminals’ for their independent fuel storage and distribution facility at the Eastern Mole in the Port of Cape Town.

Muziwandile Mseleku, CEO Burgan Cape Terminals, says, “We are very pleased with the decision and would like to thank the environmental authorities for conducting an independent, thorough and professional process. DEA&DP’s decision is a vote in favour of security of fuel supply in the Western Cape and for greater competition.

“The country’s evident need for the independent storage and distribution facilities is supported by the fact that we have already signed up a number of customers. We hope to commence with construction as soon as all the necessary permits and licences are in place.”

Transnet National Port Authority (TNPA) awarded Burgan the tender for the development to address the ongoing fuel shortages in the Western Cape.

“This decision is a good one for the country. As we all know, South Africa is likely to be energy constrained for many years to come, so the more contingencies we put in place to address this energy challenge the better. The development will also have a positive effect on the economy, on global skills transfer and on the transformation of the local energy sector.”

During the EIA application process, the incumbent energy major in the Western Cape, Chevron, had raised some concerns about the impact of the proposed Burgan facility on the existing local fuel industry.

Mseleku says, “There is space for everyone. Oil companies in the Western Cape will and intend to continue to support Chevref's supplies in preference to imports and coastal supplies when the Burgan Terminal is installed. We are a fuel storage company, not a refinery. Burgan has never been a direct competitor to Chevron.

“Our vision when we started planning the construction of Burgan Cape Terminals has always been about creating more options for petroleum storage in the Western Cape market. Our aim has been to act as a conduit for existing and new entrants into the fuel market. We are sure that this facility will create new opportunities in the petroleum industry that will translate into benefits for the general public and local businesses.”

Chevron South Africa, trading under the Caltex brand in the country, is aware of the Western Cape Department of Environmental Affairs and Development Planning’s decision to approve the EIA and Delight Ngcamu-Aitken, Spokesperson for Chevron South Africa, commented, “We are naturally disappointed with this outcome and continue to evaluate our options within the regulatory process framework which includes the potential for an appeal.”

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