The Competition Commission intends to prosecute liquid gas supplier Vita Gas for allegedly abusing its market dominance in the supply of liquified petroleum gas from import terminals in the Western Cape.
The Sunrise terminal is currently the only LPG terminal in the Western Cape and is located at Saldanha Bay. The Western Cape is almost entirely reliant on imported LPG, which comes through the Sunrise terminal facility. The Sunrise LPG terminal facility comprises a multi-buoy mooring system, subsea and overland pipeline, storage and blending facilities, as well as truck loading facilities.
The commission also found that the exclusive agreement prevents competitors of Vita Gas from gaining access to the Sunrise terminal facility and services in a manner that would enable them to import LPG at a sufficient scale to enter into, participate or expand in the market.
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