MINISTRY OF MINERALS ENERGY AND WATER RESOURCES DEPARTMENT OF ENERGY
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1 MINISTRY OF MINERALS ENERGY AND WATER RESOURCES DEPARTMENT OF ENERGY A PRESENTATION ON THE BOTSWANA NATIONAL FUEL QUALITY MONITORING PROGRAMME CRESTA THAPAMA HOTEL 22 ND MARCH 2016
2 CONTENT OF THE PRESENTATION DEMAND AND SUPPLY OF FUEL IN BOTSWANA NATIONAL FUEL QUALITY MONITORING PROGRAMME (NFQMP) Purpose and Objective of the NFQMP Botswana Fuel Quality Test Parameters, Standards and Specifications Sulphur in Diesel Fuel THE REGULATORY FRAMEWORK FOR IMPLEMENTATION OF THE NFQMP A BASIC APPRECIATION OF THE WORLDWIDE FUEL CHARTER A PERSPECTIVE ON THE SOUTHERN AFRICA CLEAN FUEL QUALITY INITIATIVES CHALLENGES EXPERIENCED WITH IMPLEMENTATION OF THE CLEANER FUELS ROAD MAP- SACU AND BOTSWANA
3 1. DEMAND AND SUPPLY OF FUEL IN BOTSWANA Botswana consumes about 1.2 billion litres of ground fuels per annum excluding LPG while consumption of aviation fuels currently stand between 18 and 20 million litres per annum December Fuels consumed in Botswana comprise:- Ground Fuels Unleaded Petrol 93 and 95 (ULP 93 and ULP95) Diesel 500ppm and 50ppm (AGO 500ppm and 50ppm) Domestic/Illuminating Paraffin and Liquefied Petroleum Gas (LPG-Butane/Propane) Aviation Fuels Jet fuel and Aviation Gasoline Fuel demand and consumption growth: 3.5% per annum
4 DEMAND AND SUPPLY OF FUEL IN BOTSWANA CONT D Procurement, supply and distribution - private oil companies (multinational and local/citizen oil companies):- Vivo Energy Botswana Puma Energy Botswana Engen Marketing Botswana Total Oil Botswana and Chevron (Caltex) Botswana Some citizen oil companies also supply part of the local commercial market Fuel is supplied by both rail (approx. 40%) and road (approx. 60%)
5 DEMAND AND SUPPLY OF FUEL IN BOTSWANA CONT D More than 90% of the products sourced and supplied from and via Durban and Talton in RSA into Gaborone Petrol accounts for less than 45% and diesel for less than 55% while paraffin is only sold in very small volumes Major fuel consumption sectors: Agriculture, Mining, Transport and Industrial sector The retail pump prices for all the liquid fuels including aviation fuels is fully regulated by the Government Diversification of sources and routes of fuel supplies-mozambique and Namibia Strategic intention: RSA-57%, Moz. -35% and Namibia - 8%
6 2. NATIONAL FUEL QUALITY MONITORING PROGRAMME (NFQMP) 2012: Government of Botswana establishes fuel quality testing laboratories A fixed laboratory (Lobatse) and 1 mobile testing Intention to accredited the Laboratories by the SADCAS ISO to end with a robust product quality monitoring and management Purpose and objective of the NFQMP: to ensure that products supplied within the Botswana market are of good quality and comply with fuel specifications set for the country Fuel quality specifications have been adopted for Botswana (petrol, diesel and paraffin)
7 4. FUEL QUALITY TEST PARAMETERS, STANDARDS AND SPECIFICATIONS Petrol (Mogas/Premium Motor Spirit) Distillation: volatile components of the fuel and distillation properties in terms temperature, residue content Octane Number: anti-knock quality of a fuel to make sure that the fuel does not combust at low temperatures causing false detonation and poor performance of the associated power unit or engine Density: Viscosity: to check the physical properties that define the fuel since every liquid has its own specific density to check the flow properties of the fuel to ensure proper air/fuel mixture in order to minimize flow resistance for optimal combustion
8 5. FUEL QUALITY TEST PARAMETERS, STANDARDS AND SPECIFICATIONS CONT D Diesel (Automotive Gas Oil) Density: Viscosity: to check the physical properties that define the fuel since every liquid has its own specific density to check the flow properties of the fuel to ensure proper air/fuel mixture in order to minimize flow resistance for optimal combustion Distillation: volatile components of the fuel and distillation properties in terms temperature, residue content Cetane Number: Sulphur Content: to check propensity of the fuel to burn at low temperature to check the content of sulphur presence in the fuel (diesel paraffin and jet-fuel)
9 6. SULPHUR IN THE DIESEL FUEL Sulphur occurs naturally in crude oil and is removed during oil refining process If not removed or reduced, it will remain present in the vehicle fuel particularly on the diesel Sulphur is an unwanted substance in fuel as it can cause cross contamination in the fuel distribution system Reduction of the sulphur will provide immediate reductions of emissions from all catalyst-equipped vehicles on the road Sulphur free and metal free fuels remain a critical prerequisite for ultra-clean efficient and durable emission control systems other than the climate change requirement
10 7. LEGAL AND REGULATORY FRAMEWORK FOR IMPLEMENTATION OF THE NATIONAL FUEL QUALITY MONITORING PROGRAMME Currently there is no legislation directly supporting compliance to the set fuel specifications. However, efforts have been advanced to develop and promulgate an appropriate Act; Petroleum Products Supply Act that would ensure mandatory compliance Other than the above, currently all the companies test the fuel quality for themselves There is an intention to establish a Botswana Energy Regulator which will amongst other things; take over the responsibility on the implementation of the NFQMP
11 8. A BASIC APPRECIATION OF THE INTERNATIONAL FUEL CHARTER A Worldwide Fuel Charter was established in 1998 with the objectives to:- Increasing understanding of the fuel quality needs for the motor vehicles engines technologies promoting fuel quality harmonization world wide in accordance with the needs of the motor vehicle and fuel supply industry The Charter matches fuel specifications to vehicles and engine specifications required to meet the various customer needs The Charter was revised in 2013 (5th Edition) to introduce the 5th category that defines the high fuel quality requirements for highly advanced markets with requirements for emission controls and fuel combustion efficiency
12 8. A PERSPECTIVE ON THE SOUTHERN AFRICA FUEL QUALITY DEVELOPMENT INITIATIVES In 1996, the South African Custom Union (SACU) through the Interstate Oil Committee (IOC) developed and established a clean fuel quality development and implementation road map The road map covered amongst other things retrofitting of the South African refineries attaining refining and production of cleaner fuels (sulphur content and eventual elimination of heavy metals such as lead) A technical task team was set up comprising of representatives of the SACU, IOC member states to identify all logistics required to facilitate smooth implementation of the clean fuels road map The team in collaboration with the regional motor industry assessed and evaluated the regional vehicular fleet with an objective to classify the fleet according to the order of preparedness for switching to cleaner fuels to more accurately inform the planning
13 9. SOUTHERN AFRICA FUEL QUALITY DEVELOPMENT INITIATIVES CONT D It was revealed that almost all the petrol powered vehicles manufactured from 1986 were ready to switch to unleaded petrol without any retro-fitting while diesel could be removed as it was an undesirable substance It was also noted that vehicles older than 1986 could either continue to use petrol dosed with lead or otherwise use lead replacement petrol Sulphur in the diesel was reduced from 3000ppm to 500ppm while lead was also replaced from petrol in this region The road map further committed the member states to have reduced sulphur to 50ppm while all the metals would have been removed by The plan was to further reduce the content of sulphur to at least 50ppm and 10ppm where possible by 2016
14 10 CHALLENGES EXPERIENCED WITH EFFECTIVE IMPLEMENTATION OF THE CLEANER FUELS ROAD MAP- SACU AND BOTSWANA Limited refining capacity in the SACU region High capital cost for further retrofitting of the existing refineries Loss of production capacity by the refineries when retro-fitted to cope with production of cleaner fuels Increased cost of production of cleaner fuels (premium) due to complexity of the processes Limited availability of cleaner fuels (ULP 95 and AGO 50ppm) from the regional market Complication of supply and storage logistics infrastructure operations due to the need to handle a variety of fuels owing to the presence of much older vehicular fleet
15 QUESTIONS AND COMMENTS THANK YOU
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