"chief executive officer" means the person appointed in terms of section 11(1);

"customer" means a person purchasing gas, or purchasing transmission, storage, distribution, 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 Regulator 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 to 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 gasses 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 liquified natural gas, liquified petroleum gas, or any combination thereof;

"Gas Regulator" means the National Gas Regulator established by section 3;

"licensee" means any 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 gasses 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) and (2);

"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;

"rules" 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.

(a) promote the efficient, effective, sustainable and orderly development and operation of gas transmission, storage, distribution, liquefaction and re-gasification, facilities and the provision of efficient, effective and sustainable gas transmission, storage, distribution, liquefaction, re-gasification, and trading services;

(b) facilitate investment in the gas industry;

(c) ensure the safe, efficient, economic and environmentally responsible transmission, distribution, storage, liquefaction and re-gasification, of gas;

(d) promote companies in the gas industry that are owned or controlled by historically disadvantaged South Africans by means of licence conditions so as to enable them to become competitive;

(e) ensure that gas transmission, storage, distribution, trading, liquefaction and re-gasification, services are provided on an equitable basis and that the interests and needs of all parties concerned are taken into consideration;

(f) promote skills among employees in the gas industry

(g) promote employment equity in the gas industry

(h) promote the development of competitive markets for gas and gas services;

(i) facilitate gas trade between the Republic and other countries; and

(j) promote access to gas in an affordable and safe manner.

(a) issue licences for—

(b) gather information relating to the production, transmission, storage, distribution, trading, liquefaction and re-gasification, of gas;

(c) issue notices in terms of section 26(1) and, if necessary, take remedial action in terms of section 26(2);

(d) undertake investigations and inquiries into the activities of licensees;

(e) consult with government departments and other bodies and institutions regarding any matter contemplated in this Act;

(f) consult with government departments and gas regulatory authorities of other countries to promote and facilitate the construction, development and functioning of gas transmission, storage, distribution, liquefaction and re-gasification facilities and services;

(g) regulate prices in terms of section 21(1)(p) in the prescribed manner;

(h) monitor and approve, and if necessary regulate, transmission and storage tariffs and take appropriate action when necessary to ensure that they are applied in a non-discriminatory manner as contemplated in section 22;

(i) expropriate land or any right in, over or in respect of such land as is necessary for the performance of a licensee's functions;

(j) promote competition in the gas industry;

(k) promote the optimal use of available gas resources;

(n) perform any activity incidental to the performance of its functions;

(o) make rules in accordance with section 34 (3); and

(p) exercise any power or perform any duty conferred or imposed on it under any law.

(a) is not a South African citizen resident in the Republic of South Africa;

(b) is an unrehabilitated insolvent;

(c) has been convicted of an offence involving dishonesty;

(e) is in the employ of, or affiliated to, an organ of state in any sphere of government; or

(f) has any other conflict of interest in this regard.

(a) who have adequate legal, technical, business, economic or other experience relevant to the transmission, storage, distribution of gas or trading in gas;

(b) who are collectively representative of South African society as a whole;

(c) who are committed and available to fulfill their role as members of the Gas Regulator; and

(d) who demonstrate impartiality and objectivity,

(c) notify the Minister and the Gas Regulator when those interests change.

(a) becomes of unsound mind;

(b) has been absent from more than two consecutive meetings without leave of the chairperson for each absence;

(c) resigns by written notification to the Minister;

(d) materially breaches any duty imposed on him or her in terms of this Act; or

(e) becomes disqualified from being a member on any of the grounds referred to in section 6(1).

(b) act in a justifiable and transparent manner whenever the exercise of their discretion is required;

(c) at all times act in the interest of the Gas Regulator and not in their own or sectoral interests;

(d) act independently of any undue influence or instruction;

(e) recuse themselves from and refrain from voting on or discussing any matter pending before the Gas Regulator in which they have a direct or indirect interest; and

(f) act in a manner that is required and expected from the holder of a public office.

(a) consistent with the Constitution and this Act;

(b) in the public interest;

(c) within the powers of the Gas Regulator, as set out in this Act;

(d) taken within a procedurally fair process in which all affected persons have the opportunity to submit their views and present relevant facts and evidence at their own expense to the Gas Regulator;

(e) based on facts and evidence that must be summarised and recorded with the decision;

(t) in writing; and

(g) explained clearly as to its factual and legal bases and the reasons therefor.

(3) Any person adversely affected by a decision of the Gas Regulator may bring such decisions under review by the High Court.

11. (1) The Gas Regulator must appoint a chief executive officer for the Gas Regulator.

(2) Subject to the directions of the Gas Regulator, the chief executive officer is responsible for —

(a) the day to day management of the affairs of the Gas Regulator; and

(b) administrative control over the employees appointed under subsection (3).

(a) appropriations from the National Revenue Fund;

(b) levies imposed by or under separate legislation; and

(c) charges for dispute resolution and other services rendered.

(a) Licences granted, amended or withdrawn;

(b) regulations made and directives issued;

(c) the envisaged strategies of the Gas Regulator;

(d) the existing position and envisaged commercial developments with respect to the transmission, storage, distribution, liquefaction or re-gasification of gas and the gas trade;

(e) the position regarding health and safety in the industry; and

(f) such other matters as the Gas Regulator may deem necessary.

(a) construct gas transmission, storage, distribution, liquefaction or re-gasification, facilities or convert infrastructure into such facilities;

(b) operate gas transmission, storage, distribution, liquefaction or re-gasification facilities; or

(c) trade in gas.

(a) determine whether any person is engaged in any of the activities requiring a licence as contemplated subsection (1);

(b) direct any person engaged in any of the activities requiring a licence in terms of subsection (1) who is not in possession of the necessary licence to cease such activity.

(a) the name, company number (if any) and principal place of business of the applicant;

(b) particulars of the owners or shareholder of the applicant if the applicant is not a natural person;

(c) documents demonstrating the administrative, financial and technical abilities of the applicant;

(d) a description of the proposed facility to be constructed or operated, or the proposed trading to be conducted, including maps and diagrams where appropriate;

(e) a general description of the type of customers to be served and the tariff or gas price policies to be applied;

(f) the plans and ability of the applicant to comply with all applicable labour, health, safety and environmental legislation;

(g) a detailed specification of the gas that will be traded under the licence; and

(h) such other particulars as may be prescribed.

17. (1) When application is made for a licence contemplated in section 16, the person concerned must publish a notice of the application in at least two newspapers circulating in the area of the proposed activity in any two official languages (one of which must be English).

(2) The advertisement must state—

(a) the name of the applicant;

(b) the object of the application;

(c) the place where the application will be available for inspection by any member of the public;

(d) the period within which any objections to the issue of the licence may be lodged with the Gas Regulator;

(e) the address of the Gas Regulator where any objections may be lodged: and

(f) that objections must be substantiated by way of an affidavit or solemn declaration.

(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) shall publish criteria contemplated in section 19 (2) and allow the applicant to amend its application.

(a) after the expiration of the period contemplated in section 17(2)(d), if no objections have been received; or

(b) after receiving the response of the applicant to objections as contemplated in section 18(c).

(b) the operation of gas transmission, storage, distribution, liquefaction and re-gasification, facilities; and

(c) trading in gas.

(a) A licensee shall carry out the construction, operations or trading activities for which the licence is granted;

(b) Licensees shall provide information to the Gas Regulator of the commercial arrangements regarding the participation of historically disadvantaged South Africans in the licensees’ activities as prescribed by regulation and other relevant legislation;

(c) The gas transmission, storage, distribution, trading, liquefaction and re-gasification, activities of vertically integrated companies must be managed separately with separate accounts and data and with no cross-subsidisation;

(d) third parties must in the prescribed manner have access on commercially reasonable terms to uncommitted capacity in transmission pipelines;

(e) interested parties must be allowed to negotiate changes with transmission companies in the routing, size and capacity of proposed pipelines;

(f) interested parties must be allowed to negotiate with transmission companies for increases in compression of existing transmission pipelines and all pipeline customers must benefit equitably from reduced costs resulting from the increased volume;

(g) transmission companies are not obliged to incur any additional expenditure to provide the changes referred to in paragraphs (c) and (d), and the total cost for the pipeline must be shared equitably between the transmission company and the parties requesting the change;

(h) licensees must allow interconnections with the facilities of suppliers of gas, transmitters, storage companies, distributors, reticulators and eligible customers, as long as the interconnection is technically feasible and the person requesting the interconnection bears the increased costs occasioned thereby which must be taken into account when setting their tariffs;

(i) third parties must in the prescribed manner have access on commercially reasonable terms to uncommitted capacity in storage facilities;

(j) interested parties may negotiate with storage companies for changes in the capacity of storage facilities;

(k) storage companies are not obliged to incur any additional expenditure to provide the changes contemplated in paragraph (j) and the total cost for the storage facility must be shared equitably between the storage company and the party requesting the change;

(l) apart from direct sales via physical by-passes to eligible customers who may alternatively have access to the distribution network at the distributor's discretion, a distributor will be granted an exclusive geographic area, but only for a particular range of specifications of gas determined by the Gas Regulator;

(m) a distributor will be granted the construction, operation andtrading licences for its exclusive geographic area, which licences will be exclusive, for a period of 25 years or such longer period as determined by the Gas Regulator;

(n) an exclusive geographic area must be based on the distributor's ability to supply present and future potential consumers at competitive prices and conditions;

(o) gas must be supplied by a licenced distributor within its exclusive geographic area to any person on request, if such service is economically viable;

(p) maximum prices for distributors, reticulators and all classes of consumers must be approved by the Gas Regulator where there is inadequate competition as contemplated in Chapters Two and Three of the Competition Act 1998 (Act No. 89 of 1998);

(q) an advisory service with regard to the safe and efficient use, handling and storage of gas must be provided to customers other than eligible customers, by the trading licensee;

(r) licensees must maintain their facilities in a fully operative condition;

(s) All customers in a licenced distribution area, except eligible customers, reticulators and customers of reticulators, must purchase their gas from the distribution company licenced for that area;

(t) the time period within which gas facilities will become operational must be fixed;

(u) licensees must provide information necessary for the Gas Regulator to perform its functions.

(a) on application by the licensee;

(b) with the permission of the licensee;

(c) upon non-compliance by a licensee with a licence condition;

(d) if it is necessary for the purposes of this Act; or

(e) on application by any affected party.

(a) the licenced facility or activity is no longer required;

(b) the licenced facility or activity is not economically justifiable; or

(c) another person is willing and able to assume the rights and obligations of the licensee concerned in accordance with the requirements and objectives of this Act, and a new licence is issued to such person.

(a) The production or importation of gas; or

(b) an activity referred to in items 1 and 2 of Schedule 1.

(a) at all reasonable times enter any property on which a licenced activity is taking place and inspect any facility, equipment, machinery, book, account or other document found thereat; and

(b) require any person to furnish the Gas Regulator with such information as may be necessary for the proper application of this Act.

(a) customers relating to the supply of gas;

(b) customers relating to unreasonable or excessive prices or tariffs imposed by a licensee; and

(c) any customer concerning unreasonable differences regarding the supply of gas or gas services by licensees;

(a) supporting information; and

(b) a description of efforts made to resolve the dispute before resorting to the Gas Regulator.

(a) a licensee is unable to acquire land or a right in, over or in respect of such land by agreement with the owner; and

(b) the land or any right in, over or in respect of such land is reasonably required by a licensee for gas transmission, storage, distribution, liquefaction or re-gasification, facilities which will enhance the Republic's gas infrastructure.

33.

(a) in accordance with a route and in terms of specifications approved by the authority concerned; and

(b) except in cases of emergency, under the supervision of the authority concerned.

(5) Subject to subsection (6), any person authorised thereto in writing by a licensee may at all reasonable times enter any premises to which gas is or has been supplied—

(a) in order to inspect, repair, replace or alter any pipe, meter, fitting, work and apparatus belonging to such licensee;

(b) the purpose of ascertaining the quantity of gas consumed; or

(c) where a gas supply is no longer required, for the purpose of removing any pipe, meter, fitting, work and apparatus belonging to such licensee.

(a) except in cases of emergency, make arrangements with the occupant or owner of the premises before entering such premises;

(b) adhere to all reasonable security measures of the occupant or owner of the premises; and

(a) ensuring fair administrative action by the Gas Regulatory;

(b) criteria for distribution;

(c) the qualifying thresholds and other requirements that must be met by a person in order to qualify as an eligible customer and the conditions under which such eligible customer may purchase gas from a supplier or trader;

(d) the rehabilitation of land used in connection with the transmission, storage, distribution, liquefaction or re-gasification of gas or the trading therein, the provision of security for rehabilitation purposes and the composition and amount of such security;

(e) the determination of gas specifications;

(f) the procedure to be followed and fees to be paid in mediation and arbitration proceedings;

(g) the procedure to be followed at, and the time within which, expropriation proceedings must be conducted;

(h) the rendering of information to the Gas Regulator;

(i) price regulation procedures and principles;

(j) mechanisms to promote historically disadvantaged South Africans; and

(k) any other matter that may or has to be prescribed, or determined or provided for by regulations in terms of this Act.

(a) consult with the Gas Regulator;

(b) invite public comments on such regulations; and

(c) duly consider the comments.

(3) The Gas Regulator may make rules regarding-

(a) the procedures to be followed at meetings of the Gas Regulator;

(b) the keeping of records by the Gas Regulator;

(c) the form and manner, and contents of licence applications;

(d) the publishing of licence applications and the contents thereof;

(e) the form and manner in which objections to licence applications must be lodged and the furnishing thereof to the applicant for his or her response thereto;

(f) the procedure to be followed in considering licence applications;

(g) the publishing of information relating to uncommitted capacity by the holders of transmission, storage, liquefaction or re-gasification licences and the publishing of prices for gas supplied to customers other than eligible customers by the holders of distribution licences;

(h) the procedure to be followed in the variation, suspension or removal or the revocation of licence conditions;

(i) the form in which registration shall be lodged;

(j) the procedures to be followed in investigations, including the summoning of witnesses and the payment of witness fees;

(k) the inspection of and enquiry into the construction and operation of any gas facility or any trading in gas; and

(l) consultation with interested and affected parties.

(a) Exclusive rights and periods granted in respect of transmission and distribution of gas;

(b) third party access to the transmission pipeline from Mozambique and to certain of Sasol’s pipelines;

(c) prices charged by Sasol for gas;

(d) Sasol’s obligation to supply customers, distributors and reticulators with gas; and

(e) administration of the agreement.

1. Any person engaged in the transmission of gas for that person's exclusive use.

2. Small biogas projects in rural communities not connected to the national gas pipeline grid.

3. Gas reticulation and any trading activity incidental thereto.

4. Liquified petroleum gas supplied from a bulk storage tank or cylinder, piped at less than 2 bar gauge and crossing no more than four erf lines between separate property boundaries.