LICENSE APPLICATION AT. For Port Elizabeth LPG Constructional

Transcription

1 LICENSE APPLICATION AT For Port Elizabeth LPG Constructional Erf 8718, Chevrolet Street, Markman Industrial Park, Port Elizabeth. March 2014 Page 1 of 21

2 TABLE OF CONTENTS INDEX TITLE Page Annexure A Request for Confidential Treatment of Information submitted to the energy Regulator 4 Section A Particulars of the party making the request for confidential treatment 5 Section B Particulars regarding the type of submission 5 Section C Table request 5 Section D Oral representation 7 Section E Solemn Declaration 8 Section F Section 16 (2) 9 Annexure B Application for license 10 Chapter 1 General Information 11 Section A Particulars of Applicant 11 Section B Desired Commence date 11 Section C Additional Information 11 Section D License Conditions 11 Section E Maintenance Programmes 12 Section F Customer Profile 12 Section G Financial Information 12 Section H Human Resources information 13 Section I Permissions from other Government Departments 14 Chapter 2 Documents to be attached 15 Chapter 3 Operation of Petroleum storage facility 16 The Methodology used to determine tariffs 18 Index Internal Emergency plan 18 General description of the site 19 Communication list 20 Plan elevation 21 Fire fighting teams 22 BBB EE Generic Economic Certificate 45 Additional documentation Procedures List of Operational Procedures 46 MSDS LPG Safety Data Sheet 47 Advertisement News Paper: English & Afrikaans 49 Additional information SANS 50+ Additional information Additional information Additional information Additional information Financial statements Page 2 of 21

3 Page 3 of 21

4 ANNEXURE A REQUEST FOR CONFIDENTIAL TREATMENT OF INFORMATION SUBMITTED TO THE ENERGY REGULATOR Instructions: 1. This form must be used for all requests for confidential treatment of information submitted to the Energy Regulator. 2. Please note that this form has five sections (A, B, C, D & E). 3. All requests must be based on and substantiated in terms of the relevant provisions of: the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003); and/or the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000). 4. All requests must be accompanied by a detailed motivation supporting the request. 5. You must clearly indicate and highlight which information in your submission(s) is confidential as the Energy Regulator will not accept general claims of confidentiality of entire documents. 6. All information submitted to the Energy Regulator without this request shall be treated as nonconfidential and will be made available to the public. 7. The completed form with supporting documentation must be delivered to the Energy Regulator: by registered mail to: P O Box 40343, Arcadia 0007; OR by hand at: Kulawula House, 526 Madiba Street, Arcadia, Pretoria. 8. An electronic version of the completed form may also be ed to pipelines@nersa.org.za. ENQUIRIES: Contact: Contact no.: (012) Executive Manager: Petroleum Pipelines Regulation Fax no.: (012) Official Use Only Date received Reference number Page 4 of 21

5 CHAPTER 1 General requirements for documents submitted to the Energy Regulator SECTION A: PARTICULARS OF THE PARTY MAKING THE REQUEST FOR CONFIDENTIAL TREATMENT OF INFORMATION 1. Name: REATILE GAZ (Pty) Ltd 2. Telephone Number: +27 (10) Fax number: +27 (10) address: roger@reatile.co.za 5. Details of Mandated representative, including (a) Designation: (b) Family Name: c) First Name: Frederik (d) Telephone number: (010) Technical & HSEQ Advisor Le Roux e) Fax number: (010) (f) address: friklr@reatile.co.za SECTION B: PARTICULARS REGARDING THE TYPE OF SUBMISSION Name of Licensee: (In application) REATILE GAZ (Pty) Ltd Type of License or licensed activity to which this application is applicable: Construction of an LPG facility Location of the facility: Erf 8718, Chevrolet Street, Markman Industrial Park State the License number: Not issued yet SECTION C: Table: Request for Confidential Treatment of Information IN THE MATTER OF: Port Elizabeth Operation of a storage facility / Cylinder filling facility In this document: NKPA means the National Key Points Act, 1980 (Act No. 102 of 1980) PAIA means the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) PPA means the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003) Page 5 of 21

6 Document Name 1. Proof of administrative abilities (a) Reatile Gaz staff compliment Page, Paragraph & Line No. The documents in their entirety Legal basis as per request Protection of Personal Supporting facts & evidence (including economic value) as per request The protection of personal information is governed in South Africa by the common law and section 14 of the Constitution, which provides that everyone has the right to privacy. 2. Proof of Financial Abilities - schedules of accounts payable receivables, interest & finance charges, of material stock; a) Balance Sheet as 28 February 2013; b) Income Statement; and Trial Balance by cost elements 3. Training Guide / Procedure Workforce trained by Reatile Gaz Health & Safety Plan Reatile Gaz Emergency Procedures The documents in their entirety The documents in their entirety S16(3) PPA, S36 PAIA S16(3) PPA, S36 and S38 PAIA Documents are commercially sensitive. S36 (1) & (2) of the PAIA Information for training purposes, it demonstrates the operating procedures in terms of the OHSAct No 85 of Technical Description of the facility (a) Pipeline Integrity Reatile Filling System (Receive) The documents in their entirety Refer to Reatile Gaz S16(3) PPA, S36 and S38 PAIA S16(3) PP A S36 and S38 PAIA The pipelines would run between loading facilities and connect to the storage facilities at Reatile, which is not a National Key Point. Therefore the operations relating thereto are strategically and security sensitive for South Africa. Reatile Gaz are commercially and security sensitive. It further contains crucial information or procedures that are to be followed in case of an emergency Page 6 of 21

7 Document Name (b) Reatile Gaz LPG Depot Emergency Plans by Reatile Gaz Page, Paragraph & Line No. The Document in its entirety. Legal basis as per request S16(3) PP A, S36 and S38 PAIA Supporting facts & evidence (including economic value) as per request Commercially and security sensitive. It further contains crucial information/procedures that are to be followed in case of an emergency. Division 1: Metallurgical S.A. COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 DG Harris Tank- Technical offer 3611-R1 Page 1 to 5 Manufacturing details. Dimensions and capacities, material specifications DIVISION 2: SGE (Southern Geotechnical Engineering) Commercial offer: 1 x 45 M³ LPG tanks with equipment = R Promotion of Access to information Act 2000(Act no 2 of 2000) COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 N/A N/A N/A N/A N/A SECTION D: Oral representation to the energy regulator NO Page 7 of 21

8 SECTION E: SOLEMN DECLARATION BY REQUESTER: 1 MANDATED REPRESENTATIVE I (full names) FREDERIK JACOBUS LE ROUX Identity Number Hereby declare that: (a) I am Authorised by RINA VAN VUUREN (Reg.16 (2) by ROGER RUDD) to make this declaration (attach the authorization); and (b) All information provided herein is within my personal knowledge and is both true and correct. Signed at CHAMDOR, (place) on this18th November Signature I certify that the deponent: (a) has acknowledged that she/he knows and understands the contents of this application form and its annexures, that she/he has no objection to taking the prescribed oath and that she/he considers the oath binding on her/his conscience; and (b) Has in the prescribed manner sworn that the contents of this application form and its annexures are true and signed same before me at CHAMDOR (place) on this 19 th day of November (month) 2013(year). Original IN HARD COPY COMMISSIONER OF OATHS Name South African Police Services Address Capacity Centurion Constable / Commissioner of Oath Page 8 of 21

9 SECTION F: Section 16 (2) OCCUPATIONAL HEALTH AND SAFETY ACT, 85 of 1993 SECTION 16(2) ASSISTANT TO THE GENERAL MANAGER APPOINTMENT I, Rina van Vuuren the (Operations Manager: Reference of appointment) appointee of (Mandated representative for documents submitted to the Energy Regulator) hereby appoint you Frederik Jacobus Le Roux as the Section 16(2) (Assistant to the CEO) appointee responsible for the area known as Port Elizabeth LPG depot NERSA License Application. In terms of this appointment, you are responsible for completing documentation in the application for license at Port Elizabeth LPG depot a) The Petroleum Pipelines Act, 2003 (Act no. 60 of 2003) b) The rules made in terms of the Petroleum Pipelines Act specifically rules 1 to 11 c) In order to ensure that you meet this responsibility you must familiarise yourself with the Occupational Health and Safety Act and its Regulations. You are also required to ensure that all statutory requirements are met at all times. You may not further assign this duty. Your appointment is valid from November 2013 until the specific license is granted You shall report directly to me on all above mentioned matters arising out of the Port Elizabeth LPG depot application for License. ORIGINAL IN HARD COPY. (Appointer s Signature) Date Kindly confirm your acceptance of this appointment by completing the following: ACCEPTANCE Confirmation and Acceptance I Frederik Le Roux confirm that I have read and understood the appointment as set out above. I Frederik Le Roux confirm that I have read and understood the appendices and confirm my intention to comply with all the legal requirements. I Frederik Le Roux confirm my acceptance and understanding of the assigned responsibilities and duties involved. I Frederik Le Roux confirm that I have received information from NERSA in the assigned responsibilities and duties required of me. Initials I, Frederik Jacobus Le Roux understand the implications of the appointment as detailed above and confirm my acceptance. 25 th February 2014 Page 9 of 21

10 ANNEXURE B FORM: APPLICATION FOR A LICENCE Applications for a licence in terms of the Petroleum Pipelines act, 2003 (Act No. 60 of 2003) Instructions: 1 Prior to completing this form, you are advised to read the following documents: (a) the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003) and its regulations; and (b) the Rules made in terms of the Petroleum Pipelines Act specifically rules 1 to Please note that this form has three chapters and that applicants must provide all information and supporting documentation required. Incomplete applications will not be accepted. 3 The completed form with supporting documentation must be delivered to the Energy Regulator: by registered mail to: P O Box 40343, Arcadia, 0007; OR By hand at: Kulawula House, 526 Madiba Street, Arcadia, Pretoria. 4 An electronic version of the completed form may also be ed to: pipelines@nersa.org.za. 5 If you want to request the confidential treatment of certain information in your application, you must make the request in accordance with rule 4 of the Rules made in terms of the Petroleum Pipelines Act. ENQUIRIES: Contact: Contact no.: (012) Executive Manager: Petroleum Pipelines Regulation Fax no.: (012) Official Use Only Date received Reference number Page 10 of 21

11 SECTION A: CHAPTER 1 General Information PARTICULARS OF APPLICANT 1. Full Registered Name of the Applicant: Roger Henry Rudd 2. Trading Name of the Applicant: Reatile Gaz (Pty) Ltd 3. Physical and Postal address of the Principle place of Business of the Applicant: Reatile Gaz (Pty) Ltd. Erf 8718, Chevrolet Street Markman Industrial Park, Port Elizabeth, South Africa. 4. Physical and Postal address of the registered office of the Applicant Reatile Gaz (Pty) Ltd. PO Box Fransen Street Bryanston, 5. Telephone number of Applicant: (010) Fax number of the Applicant: (010) address of the applicant: roger@reatile.co.za 8. Details of the mandated representative of the applicant: a) Designation: Health & Safety Consultant b) Family name: Le Roux c) First Name: Frederik Jacobus d) Telephone number: (010) e) Cell number: (083) f) address: friklr@reatile.co.za SECTION B: DESIRED COMMENCEMENT DATE Desired commencement date of the license applied for: 1 March 2014 SECTION C: ADDITIONAL INFORMATION This is the application for the Construction license. Reatile Gaz starts operation on July The Operation license application will follow in June SECTION D: LICENSE CONDITIONS State your desired license conditions in terms of section 20(1) of the Act a) Operational specifications (Refer to NERSA ) (NERSA Compliance Engineer) b) Commence Trial Operations on June 2014 c) Application for Operational Licence: July 2014 Page 11 of 21

12 d) Business model is to purchase LPG from a refinery and store at Port Elizabeth until used to fill into Reatile Gaz owned cylinders. It is estimated that the quantity stored (45 m³) will be fully utilised by Reatile Gaz for its own cylinder filling and its own customers. It is estimated that Reatile Gaz cylinder sales, when at maturity, would require replenishment of the whole volume at least every third day. e) Operational procedures: Bulk filling; Cylinder filling; Transport procedure; Decanting procedure; Emergency procedures. (Attachments additional pages) SECTION E: MAINTENANCE PROGRAMMES and DECOMMISSIONING Details of any proposed major maintenance programmes, including the expected cost and duration thereof, covering the requirements of the SANS 357, OHSAct Vessels under Pressure, 3, 6 and 9 yearly inspections. Project proposals to state the expected availability, planned outage rate and of the LPG storage facility over the following nine years. The expected plant availability is 96% -very little rotating equipment and high degree of equipment redundancy means most maintenance can be done during operations. The planned outage is ten working days every three years. Planned maintenance cost will be R (average) Details of any major decommissioning costs expected during the life of the Depot, provided for the feasibility study. Plant expansions and modifications planned in the feasibility ( ) SECTION F: CUSTOMER PROFILE. Evidence is that Eskom will not have sufficient capital to construct power needed to satisfy demand growth. Peaking power will be hit hardest since it is the marginal product in scarcest supply. The applicable area consists of the Eastern Cape, 200 km radius inland from Port Elizabeth. LPG is a viable fuel source for key utilities as in hospitals, boilers, back-up generators, vehicles, central heating in high rise buildings, smelters, Domestic, Commercial and Industrial installations, etcetera. SECTION G: FINANCIAL INFORMATION. Reatile Gaz (Pty) Ltd is an unlisted private company and as such the information is not in the public domain. Commercial sensitive: This will be with the Confidential Clause SECTION H: HUMAN RESOURCES INFORMATION. Complete Staff Component employed by Reatile Gaz: 57 multiple racial. Port Elizabeth: Depot Supervisor, Stock Control, LPG Fillers, Truck Drivers, operators. Total Depot staff component nine. Page 12 of 21

13 SECTION I: PERMISSIONS FROM OTHER GOVERNMENT DEPARTMENTS or REGULATORY AUTHORITIES Documentation included A. Eastern Cape: Environmental Authorisation B. Markman Industrial Area: Geotechnical and Groundwater Investigation C. MHI Risk Assessors: Port Elizabeth-MHI D. Weighing. Scale Calibration Certificate E. The Electrical Contracting Board of South Africa. F. Architectural Design: o Office Ground Floor o Plant drawings. G. Security site instructions. Port Elizabeth H. Municipality updated water & lights account CHAPTER 2 Documents to be attached to this application (Port Elizabeth LPG depot) 1. Identity document 2. N/A (In the case of non-south African..) 3. [a] N/A ( national, provincial [b] N/A ( another statutory body etcetera) [c] N/A ( juristic person) [d] The focus is on the constructional activities relating to: Operational specifications The facility s business model, third party access arrangements and the proposed tariff methodology for such access (note this does not mean the tariff application itself yet; that takes place 3 months after the license is issued, but should at least inform on what to expect then and the allocation mechanism also follows within three months after granting. Business model is to purchase LPG from a refinery and store at Port Elizabeth until used to fill into Reatile Gaz owned cylinders. It is estimated that the quantity stored (45m³) will be fully utilized by Reatile Gaz for its own cylinder filling and its own customers. It is estimated that Reatile Gaz cylinder sales, when at maturity, would require replenishment of the whole volume at least every second day. ADDITIONAL INFORMATION; see back pages as indicated on the Contents list. 4. [a to c] N/A 5. N/A 6. Administrative abilities (Document attached) 7. Financial abilities (Document attached) Page 13 of 21

14 8. Technical abilities (see Section D: Details of application) 9. [a to b] N/A 10. An EIA (NEM Act 107 of 1998) 11. [a to b] N/A 12. N/A 13. [a] The Petroleum Pipelines Act, 2003 (Act no. 60 of 2003) [b] ACME 6000 series; ASME B16 series [c] REGO A 7796 [d] SANS series. [e] SANS 1774; SANS 1186; SANS 1091, SANS ISO 4706 [f] BS MSDS (Document attached) SANS 1774 (SANS spec for LPG) 15. BEE credentials. (Document attached) CHAPTER 3: OPERATION OF A PETROLEUM STORAGE FACILITY Port Elizabeth LPG depot Construction License (PPL.sf.F1/ / ) 1. A Technical description of the storage facility at: a) Physical address: Erf 8718, Chevrolet Street, Markman Industrial Park, Port Elizabeth b) See drawing numbers RG drawing c) Tank diameter: 2027 mm OD Height of tank: 3080 mm (on plinths) d) Tank Type: DH Harris Longitudinal tank 6.8 m Total length e) Design capacity: liters f) Product to be stored in each tank: Liquefied Petroleum Gas g) Physical dimensions and capacity. 45 m³ Total 45 m³ (A4 drawing included) h) Rate and the means: Road gantry. ± 150 l/min. i) The rate of liquid gas depends on the port sizes. 2-, 3- and 4 inch port sizes with capacities ranging from lpm j) Depot capacities run on 2 inch port and pipe and will give ± 150 liters per minute. k) Drawings: Attached l) The MHI describe the facility and possible hazards. i. Design and Piping ii. Proposed location iii. No bund walls. See Drawing iv. See Inspection Procedures and Maintenance Procedures. v. No contaminated water run-off. Normal rainwater/storm water control by ducts, channels and diversion walls. 2. Provisions for Metering: Filling bulk tanks through ACME 6000 series Electronic Totaliser Rego A 7796 Sight flow indicator Metering in liters, the frequency is ± 150 liters per minute 3. See Reatile Gaz Margin Calculation and Forecast Year ending February 2013; 2014 etcetera Page 14 of 21

15 4. EMERGENCY Plan: See REATILE INTERN SAFETY EMERGENCY PLAN. 5. Operations Procedure: See REATILE PROCEDURE; Bulk delivery. 6. National Key point Act. Not Applicable 7. Security: Appointed Security Company 24/7 Guarding. Guards are trained with operation staff on Emergency plans and handling of visitors, evacuations etcetera 8. Development Program: Project initial start March 2014 and to be completed July 2014 Phase 1: Civil work (Tank side) Phase 2: Fire walls and civil Phase 3: Tank Installation (45 m³ tank) June 2011 Phase 4: Filling Platform Civil Phase 5: Installation of Scales and appliances 9. Election of access arrangements. (Reference Chapter 2; 3[d] 10. Emergency Plan (Document attached) 11. Operational Procedures (Documents attached) DETAILS OF THE APPLICATION 12. (1) clearly indicate the amendments that you seek. This application is in support for the operational license application for REATILE GAZ (Pty) Ltd. Port Elizabeth (2) Administrative abilities of REATILE GAZ (Pty) Ltd Reatile Gaz (Pty) Ltd is an integrated company with a staff compliment of 57 people. Decision making rests with a Management team and the annual budgets are subject to approval from the Board of Directors The Company receives ongoing support on administrative matters from the (RR) REATILE GROUP (Pty) Ltd. (3) Financial abilities of REATILE GAZ (Pty) Ltd Reatile Gaz has been operating successfully in South Africa since Reatile Gaz is not a public listed company and its financial information is confidential. Reatile Gaz makes use of external independent auditors for control of its financial reporting. Annual sales are expected to reach liters of LPG in 2014 with an expected growth of 15.7 %. This represents 5% of the SA market. (4) Technical abilities Reatile Gaz is an energy company with 57 employees, 12 contract employees and operations in Cape Town (Blackheath), and Knights (Germiston depot). Its business covers the distribution chain, from bulk distribution to cylinder filling downstream, transportation and LPG marketing. Reatile Gaz is currently in access of 25 bulk storage facilities with customers. The operational staffs which are responsible for the management of the operations consist of 44 personnel. Experience range from administrative to operations in the storage and bulk distribution of LPG. Reatile Gaz meets SANS safety requirements and all facilities are subject to ongoing inspections Page 15 of 21

16 to ensure compliance. Ongoing training programs ensure that staff is prepared for all eventualities (5) Compliance with Liquefied Petroleum Gas Industry Charter. Reatile Gaz signed the LPG Associations Safety Charter. The full value is now 42% Black-owned, 14% Black Women owned and BEE points. (Level 3) (6) Current Directors: Directors: Race. S Mehlomakulu (Chairman) African J Hopa (Non -Executive) African NT Conjwa (Non-Executive) African J F Kennedy (Non-Executive) White N G Sithebe (Non-Executive) African (7) Development Cost: The estimated investment cost at Port Elizabeth is greater than R4.5 million The Methodology used to determine tariffs Reatile uses the free cash flow method to evaluate capital projects. Our required return should be more than 20%. We calculate the WACC (weighted average cost of capital) for the company, incorporating the cost of equity and cost of debt. Based on the future free cash flows and the capital outlay the project will yield a certain NPV and IRR, and if it exceeds the Reatile required returns if the project will be submitted to the Board for approval. OPERATIONAL PROCEDURES AND SECURITY ARRANGEMENTS PORT ELIZABETH LPG DEPOT In Hard Copy GENERAL DESCRIPTION OF THE SITE COMPANY: REATILE GAZ (Pty) Ltd ADDRESS: Erf 8718, Chevrolet Street, Markman Industrial Park, PORT ELIZABETH COMMUNICATION: Telephone: +27 xxxx.. Fax: +27 xxxx (not available) Page 16 of 21

17 ACTIVITY: Receiving Bulk LPGas by means of road tankers Storage of LPGas Storing new, empty, full, and defective LPGas cylinders De-air and Gas new LPGas cylinders Filling various sizes of LPGas cylinders (9kg; 19kg; 48kg.) Distribution of LPGas cylinders by trucks Decanting faulty cylinders MANAGER: Not appointed yet LPGas STORAGE: 45 m 3 Cylindrical Tank (Not installed yet) TRUCK UNLOADING: CYLINDER FILLING: By hand 2 Fixed filling scales. Cylinder washing unit (Future) Valve shrink unit with hot air or steam (Future) CYLINDER STORAGE: ~1 000 m 2 new cylinder storage area ~1 000 m 2 empty and full cylinder storage area New cylinder vacuuming and gassing unit (Future) FIRE FIGHTING: Water supply from municipality -6 Underground hydrants network 2 x Hydrants, 0 Water cannons, booster connection 1 x 30 meter fire hoses 2 x 30 m synthetic hoses 7 x 9.0 kg fire extinguishers 2 x 4.5 kg fire extinguishers AVAILABLE VEHICLES: 1 x 8 ton & 1 x 4 ton & 1 x 1.5 ton = 3 Vehicles APPROXIMATELY FIRE BRIGADE RESPONCE TIME: 8 minutes GPS Coordinates : Latitude Longitude Altitude 49 m Page 17 of 21

18 Administrative Abilities of the Applicant 30 th May 2013 NERSA Kulawula House 526 Madiba Street Arcadia Pretoria To whom it may concern. Administrative Abilities of the Applicant Reatile Gaz (Pty) Ltd is currently using Pastel Evolution Accounting package to manage the day to day running of all our operations at all our Depots (Blackheath,, Germiston and Head Office) The system comprises of branch accounting where every depot is accounted for as a profit centre Inventory management is done through the Pastel system on actual costs per warehouse. Sales volumes margin and margin percentages are managed within Pastel through operational and margin reports. Cylinder management is done through the fixed asset module as well as the inventory module. Forecasts are done on a quarterly basis to determine the cylinder requirement for the customer base. Reatile Gaz (Pty) Ltd prepares on a weekly basis cash forecasts and profit forecasts based on the volume sold. At month-end a detailed management pack is prepared and distributed to all senior management and the board of directors. For further clarification regarding the administrative abilities you can contact the writer. Regards, Morné Pienaar Financial Manager Reatile Gaz (Pty) Ltd Tel: morne@reatile.co.za Page 18 of 21

19 Page 19 of 21

20 PROCEDURES: List of Operational Procedures. In Hard Copy SAFETY DATA SHEET. SDS Nº DMC04034 Liquefied Petroleum Gas: In Hard Copy Page 20 of 21

21 Page 21 of 21