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Invitation to comment - Airports Company South Africa SOC Ltd (ACSA) – Application for a licence to operate a petroleum storage facility located at Chief Dawid Stuurman International Airport in Gqeberha, Eastern Cape 18 June 2026

policySouth Africa·National Energy Regulator South Africa·Briefly Analysis

Abstract

The National Energy Regulator of South Africa (NERSA) has invited public comment on an application by Airports Company South Africa SOC Ltd (ACSA) for a licence to operate a petroleum storage facility at Chief Dawid Stuurman International Airport in Gqeberha, Eastern Cape. This development is significant for regional aviation infrastructure and highlights NERSA's crucial role in regulating the petroleum pipelines industry under the Petroleum Pipelines Act, 2003, and the Petroleum Products Act, 1977. The invitation to comment underscores the regulatory commitment to transparency and public participation in decisions impacting national energy infrastructure and supply security.

Introduction

The National Energy Regulator of South Africa (NERSA) recently issued an invitation for public comment regarding an application by Airports Company South Africa SOC Ltd (ACSA) for a licence to operate a petroleum storage facility. This proposed facility is to be located at the Chief Dawid Stuurman International Airport in Gqeberha, Eastern Cape. The notice, dated 18 June 2026, signals a critical juncture in the regulatory process for essential energy infrastructure within South Africa's aviation sector.

Background

ACSA, established under the Airports Company Act, No. 44 of 1993, is mandated to acquire, establish, develop, provide, maintain, manage, operate, and control airports and related facilities and services in South Africa. As a state-owned company, ACSA plays a vital role in enabling trade, tourism, and safe air travel, aligning its objectives with national developmental goals. The Chief Dawid Stuurman International Airport, formerly known as Port Elizabeth International Airport, is a key regional airport serving Gqeberha, handling over a million passengers annually and significant cargo.

The regulatory oversight for such petroleum infrastructure falls under the ambit of NERSA, which was established by the National Energy Regulator Act, No. 40 of 2004. NERSA's mandate includes regulating the electricity, piped-gas, and petroleum pipelines industries. Specifically, the licensing of petroleum storage facilities is governed by the Petroleum Pipelines Act, No. 60 of 2003, and the Petroleum Products Act, No. 120 of 1977. These Acts provide the legal framework for the control, regulation, and transformation of the petroleum and liquid fuels industry, ensuring fair competition, responsible resource use, and equitable participation.

Analysis

NERSA's authority to issue licences for the construction and operation of petroleum storage facilities is explicitly derived from the Petroleum Pipelines Act, 2003. This Act stipulates that no person may construct or operate a petroleum storage facility without a licence issued by NERSA. The Petroleum Products Act, 1977, further provides the overarching legal framework for the control and regulation of petroleum products, including aspects related to licensing key activities like manufacturing, wholesaling, site development, and retailing.

When considering a licence application, NERSA evaluates several critical factors. These typically include the applicant's administrative, technical, and financial abilities to operate the facility, the necessity of the operation, market considerations, and adherence to technical standards and integrity of the tanks. For instance, applicants must provide proof of administrative abilities, such as an organogram and staff qualifications, and demonstrate financial and technical capabilities. Furthermore, NERSA requires evidence that environmental authorisation processes have been initiated, acknowledging the capital-intensive nature of such projects.

A cornerstone of NERSA's regulatory process is public participation, mandated by the National Energy Regulator Act, 2004, read with the Promotion of Administrative Justice Act, 2000 (PAJA). Applications for licences are required to be advertised in national and local newspapers, and public hearings are typically held to allow stakeholders to provide comments. This ensures transparency, accountability, and procedural fairness in administrative actions, allowing NERSA to consider diverse perspectives before making a final decision. The invitation to comment for ACSA's application at Chief Dawid Stuurman International Airport exemplifies this commitment to public engagement.

The implications of this licence, if granted, extend beyond ACSA. It directly impacts the security of fuel supply for aviation in the Eastern Cape region, supporting the airport's operations and potentially facilitating future growth in air traffic and cargo. The development of such infrastructure is crucial for maintaining efficient air travel and supporting broader economic development. However, it also necessitates rigorous environmental impact assessments and compliance with safety standards to mitigate potential risks associated with petroleum storage.

Conclusion

ACSA's application for a petroleum storage facility licence at Chief Dawid Stuurman International Airport represents a significant step in enhancing critical aviation infrastructure in the Eastern Cape. NERSA's invitation for public comment highlights the robust regulatory framework in place, which prioritises transparency, stakeholder engagement, and adherence to stringent legal and technical standards. This process ensures that decisions regarding essential energy infrastructure are made with due consideration for economic necessity, environmental impact, and public interest.

Practitioners in the energy, aviation, and administrative law fields should closely monitor the outcome of this public participation process. The final decision by NERSA will not only determine the future of fuel supply at Chief Dawid Stuurman International Airport but may also set precedents for similar infrastructure developments across South Africa's airports. Engaging with such invitations to comment is crucial for shaping regulatory outcomes and ensuring that all relevant considerations are brought to the fore.

Citations

  1. 1.Airports Company Act, No. 44 of 1993
  2. 2.National Energy Regulator Act, No. 40 of 2004
  3. 3.Petroleum Pipelines Act, No. 60 of 2003
  4. 4.Petroleum Products Act, No. 120 of 1977
  5. 5.Promotion of Administrative Justice Act, No. 3 of 2000
Invitation to comment - Airports Company South Africa SOC Ltd (ACSA) – Application for a licence to operate a petroleum storage facility located at Chief Dawid Stuurman International Airport in Gqeberha, Eastern Cape 18 June 2026 — Briefly | Briefly