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Gas Act, 2001 (Act No. 48 of 2001)

Rules in terms of the Gas Act, 2001

Annexures

Annexure B : Form: Application for a licence

Chapter 3 : Details of Application

Operation of a Gas Distribution Facility (GALA.d.F3)

 

Each numbered item below should be copied and appear at the top of a page with your information below.

 

Provide the following information:

 

1. A map of the boundaries of the geographic area and a description of the geographic area in which gas is to be distributed.

 

2. The geographic positioning data based on WGS 84, in a shapefile format compatible with ArcGIS, for the distribution network and the proposed geographic area boundaries.

 

3. A description of the facility, adequately specifying the pipelines to which the application relates. This must include key design codes to demonstrate technical feasibility and a detailed map, at a scale acceptable to the Energy Regulator, indicating the proposed:
(a) pipeline network lay-out;
(b) design capacity and pressure of each pipeline;
(c) length of each pipeline;
(d) diameter of each pipeline;
(e) material composition of the pipeline e.g. steel or HDPE;
(f) average and maximum operating pressures;
(g) location of each pressure protection and reduction station;
(h) details including the location and capacity of any storage facilities interconnected to the distribution network; and
(i) point(s) of receipt and delivery of gas.

 

4. A mechanical flow diagram for the facility.

 

5. Proof of financial viability of the facility, including:
(a) commercial structure; and
(b) proposed or actual (if already operating) financial statements and/or discounted cash flow (DCF) model (providing assumptions used in calculations and sourcing of figures);
(c) the status and/or proof of equity financing agreements and finance including terms and conditions; and
(d) other incidental costs (please specify whether legal, consulting etc).

 

6. Details of the gas source, including
(a) a copy of an independent reservoir engineer's assessment of proven and recoverable gas reserves in trillions of cubic feet and the basis for the reserves determination; and
(b) gas production program to supply gas for the project;

OR

(c) copy of the gas importation agreement.

 

7. Details of any existing and/or potential customers for the proposed facility, including:
(a) the names and physical addresses of existing customers,
(b) the names and physical addresses of potential customers,
(c) for each customer, the average or anticipated gas consumption in Gigajoules;
(d) categorization of each customer, for example as a reticulator and small, medium or large user;
(e) the gas price per Gigajoules (to be) charged to each customer;
(f) the cost of the gas to be distributed per Gigajoules, as well as any transmission and distribution tariffs and any other charges; and
(g) copies of any supply agreements with (potential) suppliers and customers.

 

8. Demonstrate the ability to supply present and future potential customers at competitive prices and conditions. This must include a 10 year development plan to install a pipeline network allowing access to gas by potential customers and showing annual commitments for the installation of pipelines.

 

9. Details regarding the following matters during the various stages of the project's development:
(a) investment plans and the schedule of implementation; and
(b) timelines for service commencement.

 

10. Provide a copy of the maintenance policy (and plans) for the facility.

 

11. If the applicant is Sasol Limited or its subsidiary, evidence of compliance with clauses 3, 4, 6 and 8.3 of Schedule One to the Agreement.