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- Is commenced by Gas Act, 2001: Commencement
South Africa
Gas Act, 2001
Act 48 of 2001
- Published in Government Gazette 23150 on 21 February 2002
- Assented to on 12 February 2002
- Commenced on 1 November 2005 by Gas Act, 2001: Commencement
- [This is the version of this document from 21 February 2002.]
Chapter I
Definitions and objects
1. Definitions
In this Act, unless the context indicates otherwise—“chief executive officer” means the person appointed in terms of section 11 (1);“customer” means a person purchasing gas, or purchasing transmission, storage or distribution or liquefaction or re-gasification services;“Department” means the Department of Minerals and Energy;“distribution” means the distribution of bulk gas supplies and the transportation thereof by pipelines with a general operating pressure of more than 2 bar gauge and less than 15 bar gauge or by pipelines with such other operating pressure as the Gas Operator may permit according to criteria prescribed by regulation to points of ultimate consumption or to reticulation systems, or to both points of ultimate consumption and reticulation systems, and any other activity incidental thereto, and “distribute” and “distributing” have corresponding meanings;“distribution company” means any person distributing gas;“eligible customer” means a customer who in the prescribed manner may buy gas directly from suppliers without the intervention of a distribution company;“gas” means all hydrocarbon gases transported by pipeline, including natural gas, artificial gas, hydrogen rich gas, methane rich gas, synthetic gas, coal bed methane gas, liquefied natural gas, compressed natural gas, re-gasified liquefied natural gas, liquefied petroleum gas or any combination thereof;“Gas Regulator” means the National Gas Regulator established by section 3;“licensee” means atty person holding a licence granted by the Gas Regulator in terms of this Act;“liquefaction” means converting natural gas from a gaseous state to a liquid state;“mine” means “mine” as defined in the Minerals Act, 1991 (Act No. 31 of 1991);“Minister” means the Minister of Minerals and Energy;“person” includes any organ of state as defined in section 239 of the Constitution;"prescribed" means prescribed by regulation or by rules;“price” means the charge for gas to a distributor, reticulator or final customer;“production” means the recovery, processing, treating and gathering of gas from wells in the earth up to the boundary of the mine, or the manufacture of synthetic or artificial gas, or the manufacturing of any gases in the refining process up to the boundary of the factory, and any other activity incidental thereto, and “produce” and “producing” have corresponding meanings;“re-gasification” means converting liquefied natural gas to a gaseous state at a re-gasification plant;“regulation” means a regulation made under section 34(1);“reticulation” means the division of bulk gas supplies and the transportation of bulk gas by pipelines with a general operating pressure of no more than 2 bar gauge to points of ultimate consumption, and any other activity incidental thereto, and “reticulate” and “reticulating” have corresponding meanings;“rule” means by a rule made under section 34(3);“service” means any service relating to the transmission, distribution, storage, trading, liquefaction or re-gasification of gas;“specification” means the chemical and physical composition, calorific values and Wobbe Index of the gas that conforms to recognised international standards and the pressure of the gas at point of entry to shared systems;“storage” means the holding of gas as a service and any other activity incidental thereto, but excludes storage of gas in pipelines which are used primarily for the transmission and distribution of gas;“storage company” means any person storing gas;“tariff” means the charge for gas services to any customer;“this Act” includes the regulations;“trading” means the purchase and sale of gas as a commodity by any person and any services associated therewith, excluding the construction and operation of transmission, storage and distribution systems, and “trading services” has a corresponding meaning;“transmission” means the bulk transportation of gas by pipeline supplied between a source of supply and a distributor, reticulator, storage company or eligible customer, or any other activity incidental thereto, and “transmit” and “transmitting” have corresponding meanings;“transmission company” means any person transmitting gas;“uncommitted capacity” means such capacity determined by the Gas Regulator in a liquefaction, re-gasification, transmission, storage or distribution facility as is not required to meet contractual obligations.2. Objects of Act
The objects of this Act are to—Chapter II
National Gas Regulator
3. Establishment of Gas Regulator
The National Gas Regulator is hereby established as a juristic person.4. Functions of Gas Regulator
The Gas Regulator must, as appropriate, in accordance with this Act—5. Constitution of Gas Regulator
6. Disqualifications and requirements regarding appointment to Gas Regulator
7. Vacation of office and termination of appointment
8. Meetings of Gas Regulator
9. Duties of members of Gas Regulator
Members of the Gas Regulator may exercise all their powers under this Act and must—10. Decisions of Gas Regulator
11. Personnel of Gas Regulator
12. Funds of Gas Regulator
The funds of the Gas Regulator consist of—13. Accounting by Gas Regulator
14. Reporting by Gas Regulator
The annual report for public entities required in terms of the Public Finance Management Act, 1999 (Act No. 1 of 1999), must be accompanied by information on the following matters:Chapter III
Gas licences and registration
15. Activities requiring licence
16. Application for licence
17. Advertising of application for licence
18. Particular information to be supplied by applicant
Before considering an application for a licence in terms of this Act, the Gas Regulator—(a)if it is of the view that the proposed construction of gas facilities or the proposed provision of gas services should be altered to provide access to third parties, must inform the applicant of that view and request the applicant to supply reasons as to why the application should not be considered subject to the imposition of such condition;(b)may direct the applicant to alter the plans for the proposed construction of gas facilities or the proposed provision of gas services in order to comply with applicable health, safety or environmental legislation;(c)must furnish the applicant with all substantiated objections contemplated in section 17(2)(f) in order to allow the applicant to respond thereto;(d)may request such additional information as may be necessary to consider the application properly; and(e)must publish the criteria contemplated in section 19(2), if applicable, and allow the applicant an opportunity to amend its application.19. Finalisation of application
20. Disposal of gas assets controlled by State
Whenever any state-controlled entity that acquired a licence pursuant to the provisions of section 19(2) sells any of its shares or any of its assets or part thereof, covered by such a licence, to any privately controlled entity, it shall do so by means of an open and transparent bidding procedure.21. Conditions of licence
22. Non-discrimination
23. Term of licence
24. Amendment of licence
25. Revocation of licence on application
26. Contravention of licence
27. Revocation of licence by court
28. Registration with Gas Regulator
Chapter IV
General provisions
29. Entry, inspection and gathering of information by Gas Regulator
30. Voluntary resolution of disputes by Gas Regulator
31. Investigations by Gas Regulator
32. Expropriation of land by Gas Regulator
33. Rights of licensee in respect of premises or land belonging to others
34. Regulations and rules
35. Transitional provisions
36. Mozambique Gas Pipeline Agreement
37. Short title
This Act is called the Gas Act, 2001, and comes into operation on a date determined by the President by proclamation in the Gazette.History of this document
01 November 2005
Commenced by
Gas Act, 2001: Commencement
21 February 2002 this version
12 February 2002
Assented to
Cited documents 2
Legislation 2
Documents citing this one 100
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