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Transport and storage

Legal framework

What is the general legal framework governing the transportation and storage of oil and gas resources in your jurisdiction?

No overarching legal framework governs the transportation and storage of oil and gas. The Petroleum Pipelines Act establishes the regulatory framework for the storage and transportation of crude oil, liquid petroleum fuels and lubricants. Similarly, the Gas Act regulates the operation of gas transmission, storage, distribution, liquefaction and re­-gasification facilities in respect of hydrocarbon gases transported by pipeline.

Operations which involve the transport and storage of oil and gas must also comply with a range of regulations relating to waste management, air quality, health and safety and hazardous substances. 


How is cross-border transportation of oil and gas resources regulated?

South Africa does not export oil and gas. Gas is imported into South Africa via the Mozambique transmission pipeline, subject to the licensing regime under the Gas Act, in terms of which trading and distribution licences must be obtained from the National Energy Regulator of South Africa (NERSA). The importation of crude oil and petroleum products, which takes place by ship, is subject to import control measures and an import permit is required from the International Trade Administration Commission in order to import these products, as discussed below. 

Are there specific provisions governing marine and ground transportation of oil and gas resources?

A range of regulatory provisions apply to the transportation of goods, including petroleum resources, by road and sea. These provisions cover, among other things, the transportation of hazardous substances by road, marine pollution and marine safety. 

Construction and infrastructure

How are the construction and operation of pipelines, storage facilities and related infrastructure regulated?

The Petroleum Pipelines Act establishes the regulatory framework for petroleum pipelines. It stipulates that no person may construct or operate a petroleum pipeline, loading facility or storage facility without a licence issued by NERSA. 

The Gas Act establishes the regulatory framework for the piped gas industry. It applies to all hydrocarbon gases transported by pipeline and expressly to liquefied petroleum gas. Under the act, no person may construct or operate gas transmission, storage, distribution, liquefaction and re-gasification facilities, convert infrastructure into such facilities or trade in gas without a licence issued by NERSA.

What rules govern third-party access to pipelines and related infrastructure?

Under both the Gas Act and the Petroleum Pipelines Act, NERSA may impose licence conditions, including that third parties be given access to pipelines. Under the Petroleum Pipelines Act, pipeline and loading facility capacity must be shared in proportion to the needs of users and prospective users, and within the constraints of the pipeline and loading facility, while uncommitted storage facility capacity must be made available to third parties. Under the Gas Act, third parties must be given access to uncommitted capacity in transmission (bulk) pipelines and storage facilities.

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