KwaZulu-Natal Business 2016-17 edition

OVERVIEW
erses KwaZulu-Natal from west
to east and north to south. The
petroleum network has intake
stations at both Durban refineries,
while the gas pipeline runs
from Secunda to Durban, with
diversions to the manufacturing
hubs of Newcastle and Richards
Bay, and along the coast between
Durban and Empangeni.
Transnet Pipelines employs
658 staff, with about 200 located
at the head office in Anton
Lembede Street in downtown
Durban.
(among other things) in fuel products. The modifications to the refinery
will bring it into line with the tougher legislation regarding fuel
production that is in the pipeline.
The Enref refinery owned by Engen can produce 135 000 barrels
per day. This sophisticated refinery can convert light and heavy crude
oil into high-value products that include jet and diesel fuel, solvents,
bitumen, sulphur, bunker oil and aviation gasoline.
Safor is a base-oil production facility (jointly owned by Engen, Caltex
and Total, but operated by Engen) that produces 45% of Southern
Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant,
which produces in excess of 72-million litres of finished lubricants
every year.
KwaZulu-Natal has the second-highest consumption of diesel fuel
of South Africa’s provinces (17.8%) and the third-highest consumption
of petrol (15.4%).
Petroleum
KwaZulu-Natal’s two oil refineries
produce large volumes of a
wide range of products. They are
important regional and national
assets as their joint production
accounts for more than 300 000
of the 700 000 barrels of refined
crude oil that South Africa produces.
BP, one of the joint operators of
the Sapref refinery located south
of Durban, spent R1.4-billion on
energy infrastructure in South
Africa in the period to 2013.
South Africa’s biggest refinery
is Sapref. Owned jointly by
Shell SA Refining (25%), Thebe
Investments (25%) and BP
Southern Africa (50%), it has a capacity
to produce 180 000 barrels
per day. The refinery also makes
propylene feedstock, solvents,
sulphur, asphalt, industrial-processing
oils and liquefied petroleum
gas.
Sapref has started a 'cleanfuels'
project, aiming to reduce
sulphur and benzene levels
Gas
In the Richards Bay Industrial Development Zone a gas-to-power
project has been proposed by the zone's managers. The plan involves
importing gas from the nearby Mozambique gas fields by ship or
pipeline. An even more attractive option would be if gas were found
off the coast of Richards Bay.
The regulator and promoter of oil and gas exploration in South
Africa, Petroleum Agency South Africa, has awarded coalbed-methanegas
exploration rights in KwaZulu-Natal to NT Energy Africa, which
has a partnership with the Central Energy Fund. These awards are for
onshore exploration. The Petroleum Agency SA is an agency of the
National Department of Energy.
Plants in Durban, Pietermaritzburg and Richards Bay produce a
variety of industrial, household and medical gases. End products include
acetylene welding products and compressed-oxygen cylinders.
Air Liquide is spending R100-million on expanding its liquid-nitrogen
plant in Richards Bay, and Afrox has budgeted R500-million for
moving its headquarters to an 111 000m² site at Cornubia Industrial
Estate near Umhlanga. Operations will be moved from the Port of
Durban, Pinetown and Seaview. The new plant will be expected to fill
5 000 cylinders every day.
ONLINE RESOURCES
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency SA: www.petroleumagencysa.com
South African National Energy Association: www.sanea.org.za
South African Petroleum Industry Association: www.sapia.co.za
Transnet Pipelines: www.transnetpipelines.net
75 KWAZULU-NATAL BUSINESS 2016/17