Facilitating LPG shipments to the Western Cape

Genesis was retained by Avedia Energy, a firm involved in a wide range of LPG handling, trading and bottling activities, to assist in its contested application to the National Energy Regulator of South Africa (NERSA) for a licence to construct and operate an LPG storage facility in Saldanha in the Western Cape. Central to the success of Avedia’s storage facility was to the ability to interconnect with the off-loading facility of a company in the area that was already licensed by NERSA, Sunrise Energy.

Sunrise Energy objected to Avedia's application, arguing that it had an exclusive right to both off-loading and storage in the port, and that Avedia should be compelled to use its facilities as otherwise Sunrise's project would not be viable.

Drawing on our knowledge of the relevant legislation and regulations, our deep understanding of LPG markets, and evidence-based approach to our analysis, we provided expert economic analysis and testimony on this matter before NERSA. The Genesis team found that access to, and interconnection with, the Sunrise Energy off-loading facility should be guaranteed to Avedia and other third parties, and that there was no basis for exclusivity in storage services with competition in storage being important for the growth of the industry and the viability of the off-loading facility.

Our analysis and independent testimony were key inputs into the regulatory process of NERSA and its ultimate decision was to grant a licence to Avedia and enforce the requirement for Sunrise Energy to provide interconnection.

Genesis has since provided ongoing assistance to Avedia Energy, including representations to NERSA regarding Sunrise’s tariff application, as well as in developing Avedia’s own tariff application in 2016.