Ministry of Mines and Energy - Directorate of Energy

In order to provide further legislation, which is needed to efficiently regulate the gas sector as regards the transportation, distribution, storage, marketing and the sale of natural gas in Namibia, the Ministry of Mines and Energy is currently engaged in a series of consultations in the drafting of a Gas Act for Namibia.

This process is in line with the White Paper on Energy Policy, which was developed and adopted by the Ministry of Mines and Energy in 1998. The aim is to establish an environment that is conducive to investment, and that promotes and protects the interests of the gas industry and gas customers. Therefore, the Ministry of Mines hosted a workshop on Monday 26 June 2000 and initiated future work sessions involving all the stakeholders in Namibia where the draft Gas Act will be presented and discussed.

To promote the establishment of a natural gas transportation and distribution network in Namibia for the purposes of domestic supply and for export;

To establish a framework of licensing for the gas industry and a national gas regulator to monitor the performance of licence conditions;

To ensure safety, efficiency and environmental responsibility in the transportation and distribution of natural gas;

To facilitate investment in pipeline infrastructure by private, public, municipal and mixed owned enterprises;

To promote a competitive market in gas in the long term, and to stimulate cross-border trade in gas between Namibia and its neighbours.

At the workshop several issues were addressed, amongst others: third party access, the role of the Ministry of Mines and Energy and that of an independent Regulatory Authority, tariffs, unbundling of transmission and distribution, a self regulating industry or a strong regulatory body, environmental and social upliftment, and regional harmonization. The participants were also informed about gas industry developments in Europe, Latin America, United States of America and South Africa. The stakeholders that participated, mainly from the private sector, were invited to submit their written comments on the first draft to the Ministry of Mines and Energy by Friday 8 July 2000 before a new draft is prepared. In the mean time, consultations will also take place with other relevant government Ministries on issues pertaining to the environment, tariffs, access to land and investment opportunities. The objective of the Ministry of Mines and Energy is to have the draft Bill finalised in consultation with all stakeholders by December 2000 and enacted by Parliament early next year.