South African Business 2020 edition
A unique guide to business and investment in South Africa. Welcome to the eighth 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. 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. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
A unique guide to business and investment in South Africa.
Welcome to the eighth 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. 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. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
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OVERVIEW FOCUS<br />
expanded with the oil and gas<br />
sectors as priorities. The same is<br />
true of Richards Bay in KwaZulu-<br />
Natal and the Coega Industrial<br />
Development Zone.<br />
The Port of Saldanha has a new<br />
open-access liquefied petroleum<br />
gas (LPG) plant run by Sunrise Energy.<br />
In 2016, the Department of<br />
Trade, Industry and Competition<br />
(dtic) established a Gas<br />
Industrialisation Unit (GIU). The<br />
first two sites identified by the<br />
DoE for liquefied natural gas (LNG)<br />
plants are Richards Bay (2 000MW)<br />
and the Coega Industrial<br />
Development Zone (1 000MW)<br />
in the Eastern Cape. This has the<br />
potential to turn the Richards Bay<br />
Industrial Development Zone<br />
(RBIDZ) and its Eastern Cape counterpart<br />
into energy hubs. The fact<br />
that Mozambique has significant<br />
offshore deposits is a factor in<br />
this ambition.<br />
The Coega IDZ is also home to<br />
the country first gas-fired plant to<br />
be run by a private consortium, the<br />
Dedisa power plant. A new gas turbine<br />
open-cycle power plant near<br />
Durban has been commissioned<br />
by Avon Peaking Power.<br />
Supply news<br />
A number of <strong>South</strong> <strong>African</strong> facilities<br />
are being expanded and new ones<br />
are being built to accommodate<br />
more fuel and gas storage. National<br />
usage of LPG currently amounts to<br />
400 000 tons per year, but this is set<br />
to increase dramatically, partly as a<br />
result of this increased storage capacity. Some examples are:<br />
• Bidvest Tank Terminals is building a mounded LPG storage facility<br />
that will have the biggest tanks in the world. Each of the four 60m<br />
long tanks weighs 5 650 tons and they have a combined capacity<br />
of 22 600 tons. The expected supply from the new facility will be<br />
200 000 tons per annum. The LPG will be supplied by Petredec.<br />
• Novo Energy have built a R130-million natural gas compression<br />
plant in the Highveld Industrial Park in Mpumalanga. The park is<br />
well connected by rail and road to all the major industrial nodes.<br />
The facility will operate around the clock and has access to Sasol’s<br />
natural gas pipeline.<br />
• Sasol and BP have increased the storage capacity of the Alrode fuel<br />
depot south-east of Johannesburg seven-fold, from 9-million<br />
litres to 64-million litres.<br />
• Air Products recently invested R100-million in its existing carbon<br />
dioxide plants in Newcastle (KwaZulu-Natal) and at the Natref<br />
refinery at Sasolburg.<br />
Assets<br />
The <strong>South</strong> <strong>African</strong> oil industry generates annual sales of about R365-<br />
billion and includes global giants such as Engen, BP, Shell, Total and<br />
Caltex. Sasol is a major player in the oil sector and the only company in<br />
the petrochemicals sector.<br />
Most of the oil that feeds the country’s four crude-oil refineries is<br />
imported. The refineries are in Cape Town, Sasolburg and Durban (two).<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 />
Getting fuel to Gauteng is the key mission of the new multi-purpose<br />
pipeline (NMPP) which started delivering fluids in 2012. The NMPP terminals<br />
allow for greater flexibility in supply. Refined products such as jet<br />
fuel, sulphur diesel and both kinds of octane petrol are carried.<br />
ONLINE RESOURCES<br />
National Energy Regulator of <strong>South</strong> Africa: www.nersa.org.za<br />
Petroleum Agency SA: www.petroleumagencysa.com<br />
<strong>South</strong> <strong>African</strong> National Energy Association: www.sanea.org.za<br />
<strong>South</strong> <strong>African</strong> Petroleum Industry Association: www.sapia.co.za<br />
69 SOUTH AFRICAN BUSINESS <strong>2020</strong>
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