Sasol Oil has applied to the National Energy Regulator of SA (Nersa) to increase fuel storage capacity at its Alrode terminal in Alberton, south of Johannesburg, by more than fivefold to 69 800m3 at a cost of R820 million.
Andre van der Merwe, the Sasol manager in charge of the expansion, yesterday told a Nersa public hearing into the application that the petrochemicals group planned to build store depots in Pretoria, Polokwane, Klerksdorp, Nelspruit and Durban.
The cost of these depots has not yet been established.
The cost of the expansion of the Alrode terminal, which was called project Thibela, would be financed by Sasol from its internal cash resources.
Sasol was building the extra storage capacity due to the increase in the number of the group's service stations, as well as the finding by the Moerane commission in 2005 that the local fuel industry was facing a major shortage of storage and gantry capacity, he said.
It now had more than 400 service stations, after opening its first in 2004.
The company had reduced the size of the Alrode expansion from 105 900m3 to 69 800m3 due to safety concerns, including the congestion of the site, mainly due to extensions to accommodate the expansion of its delivery fleet.
The Alrode facility had an average spare capacity of 2.5 days of fuel supply. The aim was to increase this to 10 days.
Van der Merwe said the first phase of the expansion was expected to be completed by July next year, assuming the project had environmental approval by this July.
The second phase was expected to be operational by November next year.