South African Business 2018 edition
Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.
Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za.
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.
First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.
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OVERVIEW<br />
Assets<br />
Most of the oil that feeds the country’s four crude-oil refineries is imported.<br />
In addition to <strong>South</strong> Africa’s crude-oil refineries, natural-gas conversion<br />
plant, coal-to-fuel and gas-to-liquid crude-oil refineries, Sasol produces<br />
fuel from coal at its Secunda facility and PetroSA has the country’s only<br />
gas-to-liquid (GTL) facility at Mossel Bay.<br />
The Chevref oil refinery in the Cape Town suburb of Milnerton produces<br />
about 110 000 barrels a day of <strong>South</strong> Africa’s total production of 703 000<br />
barrels a day. The Natref refinery is strategically placed at Sasolburg near<br />
to the industrial hub of southern Gauteng. The petrochemical complex<br />
at Sasolburg is a major national asset. One of Sasol’s many companies,<br />
Sasol New Energy, has been working on moving the group away from<br />
reliance on fossil fuels. The Natref refinery is a joint venture between Sasol<br />
Oil (63.6%) and Total SA (36.3%). It is a technologically advanced facility,<br />
which refines heavy crude oil into petrol, diesel, commercial propane, jet<br />
fuel and bitumen. The capacity is 92 000 barrels per day.<br />
KwaZulu-Natal hosts two oil refineries which jointly account for more<br />
than 300 000 barrels of refined crude oil that <strong>South</strong> Africa produces. <strong>South</strong><br />
Africa’s biggest refinery is Sapref in Durban. Owned jointly by Shell SA<br />
Refining (25%), Thebe Investments (25%) and BP <strong>South</strong>ern Africa (50%), it<br />
has a capacity to produce 180 000 barrels per day. The refinery also makes<br />
propylene feedstock, solvents, sulphur, asphalt, industrial processing oils<br />
and liquefied petroleum gas.<br />
The Enref refinery owned by Engen can produce 135 000 barrels per<br />
day. This sophisticated refinery can convert light and heavy crude oil into<br />
high-value products that include jet and diesel fuel, solvents, bitumen,<br />
sulphur, bunker oil and aviation gasoline.<br />
Safor is a base-oil production facility (jointly owned by Engen,<br />
Caltex and Total but operated by Engen) that produces 45% of<br />
<strong>South</strong>ern Africa’s base oils. Engen also owns the adjoining Lube Oil<br />
Blend Plant, which produces more than 72-million litres of finished<br />
lubricants annually.<br />
A new facility has been added to the oil and gas sector in Cape Town,<br />
a 118 000m³ fuel storage unit. The Bergan terminal comprises 12 tanks<br />
located on the Eastern Mole of the Port of Cape Town.<br />
New gas policies and fields<br />
The Liquefied Natural Gas Independent Power Producer Procurement<br />
Programme (LNG IPPPP) is part of the broader programme of the<br />
Department of Energy which encourages private investment in renewable<br />
energy, namely the Renewable Energy Independent Power<br />
Producer Procurement Programme (REIPPPP). The total allocated<br />
to gas-to-power in the national power plan is 3 726MW, of which<br />
3 000MW is for LNG.<br />
The first two sites identified<br />
by the DoE for LNG plants are<br />
Richards Bay (2 000MW) and the<br />
Coega IDZ (1 000MW). To produce<br />
its allocation of 2 000MW, the<br />
KwaZulu-Natal plant would have<br />
to use a million tons a year of liquid<br />
natural gas (LNG).<br />
In 2016 the Department of<br />
Trade and Industry (dti) established<br />
a Gas Industrialisation Unit<br />
(GIU) which will make plans to exploit<br />
the huge fields of natural gas<br />
off the coasts of Mozambique and<br />
Angola and boost industrialisation<br />
in <strong>South</strong> Africa.<br />
At Coega, it is estimated<br />
that the new plant will inject<br />
R25-billion into the Eastern Cape<br />
economy. Large commercial gas<br />
companies such as Afrox and<br />
Air Products have plants within<br />
the Coega IDZ. First Automobile<br />
Works has established its motor<br />
assembly plant next door to Air<br />
Products’ air separation unit, allowing<br />
it ready access to the industrial<br />
gas that it needs. Liquid<br />
oxygen and nitrogen play important<br />
roles in the metals processing<br />
sector for cutting and laser<br />
applications.<br />
Companies like Hydra Arc are<br />
big gas users in welding operations<br />
as well as the construction<br />
and refinery maintenance that<br />
they undertake in the petrochemical,<br />
construction, mining<br />
and power generation industries.<br />
The Coega IDZ is also home to<br />
the country first gas-fired plant to<br />
be run by a private consortium.<br />
The Dedisa power plant is controlled<br />
by a consortium including<br />
Engie, Legend Power Solutions,<br />
Mitsui (Japan) and the Peaker<br />
Trust. A new gas turbine open<br />
SOUTH AFRICAN BUSINESS <strong>2018</strong><br />
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