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OVERVIEW International chemicals and energy company Sasol has several large plants in Mpumalanga and plays a major role in the economy of Mpumalanga. In Mpumalanga Sasol’s assets are Sasol Mining, Secunda Synfuels Operations, Secunda Chemicals Operations and Sasol Energy. Products manufactured at the Secunda complex (pictured) include petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas by-products include oxygen and acetylene, liquefied petroleum gas (LPG), and hydrogen and nitrogen. The primary feedstock for synthetic-fuel production is coal, and the plant is in the heart of Mpumalanga’s coalfield region. Sasol is spending about R12-billion on expanding the capacity of the synfuels plant and on installing an oxygen plant and more Sasol Advanced Synfuel (SAS) reactors to convert gas feedstock to liquid fuel. Sasol Gas is one of the four Sasol operations at Secunda, supplying natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal. Natural gas is an inexpensive alternative to coal. Although the coal industry still has life in it (old fields are being rehabilitated and new ones created – Sasol is itself spending R15-billion on opening three) it is a finite resource. Sasol will also likely be a key player when national government delivers its new policy on the biofuel ethanol industry. Statutory minimums for biodiesel in diesel and bioethanol in ethanol will give certainty to producers and boost production levels across the country. Sasol is already making 285 000kl of absolute alcohol in ethanol from sugar fermentation annually at Secunda. The company’s sophisticated technology for deriving liquids and gasses from coal can easily be converted to biomass sources such as sugar.

Exploration Sasol and the provincial government have commissioned an in-depth technical feasibility study for a Petrochemical Technology Park to be located in the province.

ONLINE RESOURCES Central Energy Fund: www.cef.org.za Independent Power Producers Programme: www.ipp-projects.co.za Petroleum Agency SA: www.petroleumagency.co.za PetroSA: www.petrosa.co.za South African National Energy Association: www.sanea.org.za South African Oil & Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za

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Three natural gas exploration permits were awarded to Tosaco Energy in 2017 for the area between Amersfoort and Balfour in the western part of the province. Tosaco Holdings has a 25% stake in Total SA. Testing in the sandstone-rich area should be complete by 2019. Two methane-gas exploration rights have been granted to Highland Exploration in the Evander area. Petroleum Agency SA is the state agency responsible for promoting and regulating exploration and production of oil and gas in the country. Many of the big mining and manufacturing concerns in Mpumalanga have long-term contracts for the supply of gas with big gas companies. Afrox and Air Liquide are two of the biggest, with the latter having 3 500 national customers, which include Sappi and Sasol. When it comes to liquid petroleum gas, mostly used in households (and normally delivered by canisters), some changes are coming for consumers. The Competition Commission wants to make the sector more competitive and aims to do this by reducing the duration of contracts between bulk sellers and refineries. (Mail & Guardian). South Africa’s LPG market is worth R1.5-billion per annum and the country produces 300 000 tons of product. One of the aims of the commission is to make LPG cheaper and more easily available to private consumers, who currently make up just 3% of the market. MPUMALANGA BUSINESS 2018/19

Profile for Global Africa Network

Mpumalanga Business 2018/19  

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insig...

Mpumalanga Business 2018/19  

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insig...

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