South African energy fund to provide emergency jet fuel for Joburg airport -operator (updated)

Magma Silver

09/05/2022 15:54

(Adds additional 20 mln litres of stock)
    By Nqobile Dludla
    JOHANNESBURG, May 9 (Reuters) - South Africa's
state-controlled Central Energy Fund is working on providing an
additional 1.5 million litres of jet fuel for Johannesburg's OR
Tambo International Airport in the event of further supply
shortages, the head of the airport operator said on Monday.
    Last month an oil industry body flagged the jet fuel
shortage at Johannesburg's OR Tambo International Airport, one
of Africa's busiest airports, linking it to damage from
devastating floods in KwaZulu-Natal province that have left
thousands homeless and caused at least 10 billion rand ($633
million) of damage to infrastructure.  urn:newsml:reuters.com:*:nL5N2WJ4Y6  urn:newsml:reuters.com:*:nL2N2WO1IR
    "While overall stock levels are stable, certain suppliers
impacted by the declared force majeure are still unable to
acquire the quantities of jet fuel they require," Mpumi Mpofu,
chief executive of Airports Company South Africa (ACSA), told a
news conference.
    As a result, the Central Energy Fund will invoke available
legislative measures to ensure there is energy security and
"they are working on providing approximately 1.5 million litres
of jet fuel in the event that the mismatch between supply and
demand is not mitigated," Mpofu added.
    The initial shortage had forced two international airlines
to cancel 15 flights in total, while some airlines have been
forced to re-route and make stops for fuel in Durban and even in
Windhoek, Namibia, a costly measure, she said.
    Those airlines, which Mpofu did not want to name, have
resumed flights.
    As a result of these flight cancellations, ACSA lost about
1.5 million rand ($93,000) in fees it generates from passengers
and hundreds of thousands of rand in lost landing fees, Mpofu
said.
    Approximately 140 sections of state logistics group 
Transnet's freight rail lines were damaged on the route to
Johannesburg during the floods in April. Out of 67 rail tanks
that were en route to OR Tambo International Airport at the
time, only 11 arrived, with 56 remaining behind, ACSA said in
April.
    Mpofu said on Monday that Transnet confirmed that the rail
repairs will likely be completed in full by Oct. 30 when both
rail lines will be up and running from Durban. 
    In the meantime, 50% of the railway line will be restored
and repaired by June 9.
    Shipment of an additional 20 million litres of jet fuel has
arrived at the Durban Port and would be pumped to the National
Petroleum Refiners South Africa (NATREF) from this evening,
after which it would be piped to the Johannesburg airport.
    Mpofu said the airport is currently operating on 3.5 days'
worth of available stock, compared to the average of 12.3, 11.1
and 5.2 days in January, February and March.
    
($1 = 16.1782 rand)

 (Reporting by Nqobile Dludla; Editing by Susan Fenton and David
Evans)
 ((nqobile.dludla@thomsonreuters.com))