TRANSPORT TARIFF
Rompco’s application could fuel gas prices
Industrial customers in SA could pay 2% more for natural gas if Nersa grants the Mozambique pipeline company’s revised tariff application
The price of natural gas to industrial customers in SA would rise by about 2% a year, excluding discounts, if the National Energy Regulator of SA (Nersa) granted the Republic of Mozambique Pipeline Company’s (Rompco)’s revised application for a transportation tariff, Rompco GM Louis Bosch said on Tuesday.Natural gas prices are controversial because in a market in which demand exceeds supply, SA has only one supplier, Sasol, that sources it from the Mozambican pipeline.Nersa has disagreed with aspects of Rompco’s application for a tariff of R49.87/gigajoule (GJ) to recover the capital cost of adding 24 megajoules (MGJ) of capacity to the pipeline. A date for public hearings on the application is still to be finalised but Rompco needs a decision by January 1, when it will start to deliver the additional gas.Rompco is 50%-owned by Sasol Gas, 25% by the South African Gas Development Company (iGas), a SA state-owned entity, and 25% by Copanhia Mozambicana de Gasoduto, a Mozambican state ...
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