LIQUID PETROLEUM GAS
Bidvest Tanks seals storage facility deal
Bidvest Tank Terminals will invest R1bn in a new liquid petroleum gas (LPG) import and storage facility in Richards Bay for global LPG logistics company Petredec, it said on Friday. This is a significant investment in SA when business confidence is weak and capital projects are dwindling. SA’s gross domestic fixed capital formation picked up slightly in the first quarter of 2017 but is significantly less than in the third quarter of 2015. In the recently concluded investigation by the Competition Commission into the LPG market, it found that because of limited import and storage facilities for LPG in SA it was cheaper to make it locally. If supply bottlenecks were eased, LPG prices could be deregulated. Bidvest Tanks will build a 22,600-tonne storage facility adjacent to its existing tanks. Petredec will use the terminal as a customer.
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