Western Cape Business 2017 edition

OVERVIEW
potential shale gas resources. The
study centres on the area around
Beaufort West in the Karoo. The
study wants to look at the reserves,
the technology associated
with getting the gas out of the
ground and the value chain.
Natural gas lies offshore to
the west of South Africa in the
Atlantic Ocean (Ibhubesi) and off
the southern coast in the Indian
Ocean (Bredasdorp Basin). Both
fields have great potential: Block
2A of the Ibhubesi gas field northwest
of Saldanha is estimated to
have reserves of 850-billion cubic
feet of gas and the Bredasdorp
Basin is said to have reserves of
one-trillion cubic feet, but getting
to the gas has proved tricky.
The Bredasdorp Basin is close
to Mossel Bay where a gas-toliquids
plant is located. Project
Ikhwezi, run by South Africa’s oil
company PetroSA, produced 25-
billion cubic feet (bcf) from that
field instead of a projected 242bcf
(Engineering News). PetroSA recorded
a net operating loss of
R14.6-billion for the 2014/15
financial year.
Sunbird Energy (a joint venture
between Sunbird Energy 76%
and PetroSA 24%) was reported
in March 2016 to be proceeding
with plans to produce gas from
the Ibhubesi field, but lower
global gas prices and negotiations
with national utility Eskom
(which has to agree to buy the
gas) were factors that had to be
considered (Financial Mail).
Further afield, major gas finds
have been made off the coast
of East Africa and plans to pipe
greater volumes of Mozambican
gas to Gauteng are far advanced.
Industrial gas manufacturing in the Western Cape is a particular
focus for Air Products, a part of the Metkor Group controlled by Remgro.
The company is the largest supplier in the pipeline and on-site markets,
and it also supplies to the packaged chemicals, bulk and chemicals
markets. The company has a national footprint, with a very strong presence
in the oil, gas and chemical hub of the country around Sasolburg
and Vereeniging. Air Products has a network of private distributors who
get support from the company in terms of sales, service and technical
advice. Safety training is also offered.
Facilities
The gas-to-liquids plant that PetroSA runs at Mossel Bay on the south
coast is one of the country’s key pieces of energy infrastructure. Getting
new feedstock for this plant is now an urgent priorty (and something
which Project Ikhwezi was supposed to do).
The Chevref oil refinery in the Cape Town suburb of Milnerton is one
of six in South Africa. It produces about 110 000 barrels a day of South
Africa’s total production of 703 000 barrels a day. Chevron gave notice
in early 2016 of its intention to leave South Africa. A price of R15-billion
has been suggested for Chevron’s assets, which include a lubricants
business and 850 Caltex petrol stations (Sunday Times).
A new facility is to be added to the oil and gas sector in Cape Town
– a 118 000m³ fuel storage unit. The Bergan terminal will comprise 12
tanks located on the Eastern Mole of the Port of Cape Town and it will
be connected by pipeline to the Chevref refinery.
A new import terminal dedicated to Liquefied Petroleum Gas (LPG)
is being constructed at Saldanha Bay by Sunrise Energy. The terminal
will be an open-access facility, so any gas importer, distributor or
downstream user can use it for the importation of LPG, commercial
propane or commercial butane. It is due to be commissioned in the
second quarter of 2017.
ONLINE RESOURCES
Liquefied Petroleum Gas Association of Southern Africa:
www.lpgas.co.za
National Department of Energy: www.energy.gov.za
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency of South Africa:
www.petroleumagencysa.com
PetroSA: www.petrosa.co.za
Saldanha Bay IDZ: www.sbidz.co.za
South African Oil and Gas Alliance: www.saoga.org.za
WESTERN CAPE BUSINESS 2017
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