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    The Gas Industry in South Africa 2024

    Stephen Timm | South Africa | 25 January 2024

    The Gas Industry in South Africa 2022

    Stephen Timm | South Africa | 20 October 2022

    The Gas Industry in South Africa 2018

    Carole Veitch | South Africa | 17 September 2018

    The Gas Industry in South Africa 2017

    Carole Veitch | South Africa | 14 July 2017

    The Gas Industry in South Africa 2014

    Carole Veitch | South Africa | 26 May 2014

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the gas industry in South Africa includes information natural gases, LNG, LPG, helium, biogas and shale, demand and supply, production and consumption, exploration and discoveries, oil and gas reserves, prices, distribution, gas to power and the state of energy transition. There is information on notable companies, corporate actions and developments, and influencing factors such as environmental issues and technology and innovation. There are profiles of 13 companies including state-owned PetroSA, major players such as BP, Astron, Engen and Sasol, and small scale producer Renergen.

    Introduction

    • Recent low growth in gas consumption is due to limited gas supply, which is almost wholly supplied by Sasol, which expects supply to decline from 2028.
    • Several recent large offshore gas discoveries in South African and Namibian waters could be positive for the development of the local and regional gas industry.
    • Renergen, the country’s only natural gas producer, is still trying to raise finance to expand production at its onshore Virginia block in the Free State.
    • In January 2023 it also began producing small amounts of helium, which could turn the country into a significant helium producer.
    • Challenges from environmental activists are a key hurdle for the expansion of the industry.

    Trends

    • A number of green hydrogen projects are underway aimed mainly at exporting to Europe or to produce green ammonia and other derivatives.
    • Gas has been adopted by governments around the world as transition energy as countries move away from fossil fuels.
    • Gas prices, which peaked in mid-2022, have since declined, but are still slightly above pre-COVID-19 levels.
    • Local natural gas prices are excessive, according to industrial gas users and those piping Sasol gas.
    • Some automotive companies are converting vehicles to run on compressed natural gas, while LNG is also being adopted as an affordable clean fuel for long-haul trucks and vessels.
    • The DMRE says gas can be used as a power source to produce energy, and is a cleaner option than coal.

    Opportunities

    • Developing green hydrogen projects.
    • Development of LNG-fuelled vehicles and vessels.
    • Helium deposits in the Free State could turn the province into a global node for the rare gas.
    • Importing LPG and LNG.
    • Namibian finds may boost South African oil and gas sector services.
    • The availability of sizeable reserves of natural gas in neighbouring countries presents increased opportunities for regional collaboration, including pipeline development.
    • The development of biogas, including the establishment of landfill-to-biogas plants.
    • The discovery of gas resources in the southern Cape and the Karoo may attract investment to the sector.
    • The increase of LPG and LNG imports through newly-constructed import terminals with sufficient storage facilities.

    Challenges

    • A lack of infrastructure for importing and transporting gas.
    • A shortage of professionals with the requisite technical skills.
    • Economic pressures could affect industrial consumption and the availability of exploration funding.
    • Economies of scale to enable competitive pricing are required.
    • Environmental challenges.
    • Exploration and development costs are prohibitive and players are highly exposed to the volatility of commodity prices and exchange rates.
    • Large upfront capital requirements for new gas projects or converting existing operations.
    • Policy and regulatory uncertainty.
    • Shale gas exploration companies face stiff opposition from affected land-owners and environmentalists.
    • South Africa must depend mainly on imports of LPG as most of its refineries are not operating.

    Outlook

    • Oil and gas finds off the southern Cape coastline, Mozambique and Namibia, and shale gas in the Karoo, make the future of the country’s gas sector promising.
    • However, challenges include a shortage of supply, a lack of enabling policy, unsustainable pricing for industrial customers and a shortage of infrastructure such as pipelines and import terminals.
    • Gas demand could grow if gas-to-power projects come online.
    • The Department of Minerals Resources and Energy said it is keen to exploit local gas reserves.
    • Growing environmental challenges and slow moves by government to support the industry will likely make it more difficult for the country to take advantage of new finds.

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    The Gas Industry in South Africa 2024

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    The Gas Industry in South Africa 2017-07-14

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    The Gas Industry in South Africa 2014-05-26

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1 Industry Value Chain 6
    2.1 Geographic Position 7
    2.2 Size of the Industry 11
    3 LOCAL 16
    3.1 State of the Industry 16
    3.2 Key Trends 31
    3.3 Key Issues 31
    3.4 Notable Players 32
    3.5 Trade 33
    3.6 Corporate Actions 37
    3.7 Regulations 39
    3.8 Enterprise Development and Social Development 42
    4. AFRICA 44
    5. INTERNATIONAL 49
    6. INFLUENCING FACTORS 53
    6.1 Economic Environment 53
    6.2 Labour 54
    6.3 Environmental Issues 55
    6.4 Technology, R&D, Innovation 58
    6.5 Government Support 59
    6.6 Input Costs 62
    6.7 Pricing 62
    6.8 Carbon Tax 63
    6.9 Gas Discoveries 63
    7. COMPETITIVE ENVIRONMENT 65
    7.1. Competition 65
    7.2. Ownership Structure of the Industry 67
    7.3. Barriers to Entry 69
    8. INDUSTRY SUMMARY 69
    9. OUTLOOK 70
    10. INDUSTRY ASSOCIATIONS 71
    11. REFERENCES 71
    11.1. Publications 71
    11.2. Websites 72
    Appendix 1 - Summary of Notable Players 74
    Manufacturers of Gas 74
    Distributors of Gas via Pipelines 75
    Appendix 2 – Relevant Legislation 77
    COMPANY PROFILES – Manufacturers of Gas 81
    African Oxygen (Pty) Ltd 81
    Astron Energy (Pty) Ltd 85
    BP Southern Africa (Pty) Ltd 87
    Engen Petroleum Ltd 89
    National Petroleum Refiners of South Africa (Pty) Ltd 92
    Petroleum Oil and Gas Corporation of South Africa SOC Ltd (The) 94
    Renergen Ltd 98
    Shell and BP South African Petroleum Refineries (Pty) Ltd 101
    COMPANY PROFILES – Distributors of Gas via Pipelines 104
    Egoli Gas (Pty) Ltd 104
    Gigajoule International (Pty) Ltd 106
    Sasol Gas (Pty) Ltd 109
    SLG (Pty) Ltd 111
    Transnet SOC Ltd 113

    Report Coverage

    This report on the gas industry in South Africa provides comprehensive information on production, demand, prices and trade statistics of various forms of gas and developments including exploration, discoveries and corporate actions. There is information on gas infrastructure and pipelines, gas to power and the role of gas in energy transition. The report includes profiles of 13 companies such as state-owned PetroSA, major players such as Sasol Gas, local producer Renergen and wholesalers such as Afrox.

    Introduction

    • Several large offshore gas discoveries in South African and Namibian waters could be positive for the development of the local and regional gas industry.
    • Renergen, which began production at its onshore Virginia block in September 2022, is the country’s only natural gas producer after PetroSA’s Mossgas refinery recently ran out of local gas feedstock.
    • Challenges include a lack of supply and insufficient gas infrastructure.
    • The Department of Mineral Resources and Energy wants to anchor gas demand on gas-to-power projects which can help address the electricity shortage and help create a gas industry.
    • However, the sector faces an increasing number of challenges from environmental activists.

    Strengths

    • Existing gas infrastructure (the ROMPCO pipeline and ExxonMobile’s floating gas plant) is available in proximity to Mozambique and Tanzania.
    • Gas could provide a cleaner power alternative to produce electricity as South Africa reduces its reliance on coal.
    • Gas is relatively safe and clean-burning.
    • It has a multitude of domestic, commercial and industrial uses.
    • Multiple unexploited indigenous gas reserves available.
    • Political support from the DMRE and Operation Phakisa for gas market development.
    • Transporting gas via pipeline is relatively safe, cost-effective and reliable.

    Weaknesses

    • A lack of government policy on gas.
    • A lack of infrastructure for importing and transporting gas.
    • A shortage of professionals with the requisite technical skills.
    • Economies of scale – to enable competitive pricing, a minimum scale of new entries are required.
    • Exploration and development costs are prohibitive and players are highly exposed to the volatility of commodity prices and exchange rate fluctuations.
    • Minimal gas infrastructure and distribution channels. Gas infrastructure is concentrated around demand nodes in Gauteng, Mpumalanga and KwaZulu-Natal.
    • South Africa must depend mainly on imports for LPG as most of its refineries are not operating.
    • Uncertainty over the recoverability of local reserves.

    Opportunities

    •  Transitioning low-income earners from coal, paraffin or wood as an energy source, to LPG.
    • Development of LNG-fuelled vehicles and vessels.
    • Importation of LPG and LNG.
    • Offshore gas exploration.
    • Onshore exploration for shale gas and coal bed methane.
    • Recent Namibian finds may boost South African oil and gas sector services.
    • The availability of sizeable reserves of natural gas in neighbouring countries presents increased opportunities for regional collaboration, including pipeline development.
    • The development of alternative sources of clean energy, such as biogas, including the establishment of landfill-to-biogas plants.
    • The discovery of new gas resources in the southern Cape and the Karoo may attract investment into the sector.
    • The increase of LPG and LNG imports through newly-constructed import terminals with sufficient storage facilities.

    Threats

    • Economic pressures could impact adversely on industrial consumption and on the availability of exploration funding.
    • Environmental challenges.
    • Environmental risks, such as seismic activity.
    • Intense competition from traditional fuel sources and renewable sources.
    • Large upfront capital requirements for new gas projects or converting existing operations.
    • Policy and regulatory uncertainty.
    • Shale gas exploration companies face stiff opposition from affected land-owners and environmentalists.
    • The escalation of geopolitical tensions, which could threaten global gas supplies.
    • The increased competitiveness of other forms of energy, such as renewables.

    Outlook

    • Recent oil and gas finds off the southern Cape coastline, Mozambique and Namibia and shale gas in the Karoo are promising for the gas industry’s future.
    • However, the industry faces various challenges, including a shortage of supply, a lack of enabling policy, unsustainable pricing for industrial customers and a shortage of infrastructure such as pipelines and import terminals.
    • Gas demand could grow if gas-to-power projects come online.
    • Despite government’s support for gas, the growing number of environmental challenges will likely make it difficult for the country to take advantage of new finds.

    Read More..
    The Gas Industry in South Africa
    The Gas Industry in South Africa 2022

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    R 6 500.00(ZAR) estimated $366.35 (USD)*

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    Industry Landscape

    R 4 550.00(ZAR) estimated $ 256.44 (USD)*

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    Historical Reports

    The Gas Industry in South Africa 2024-01-25

    R 9 500.00(ZAR) estimated $535.43 (USD)*

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    The Gas Industry in South Africa 2018-09-17

    R 1 900.00(ZAR) estimated $107.09 (USD)*

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    The Gas Industry in South Africa 2017-07-14

    R 1 900.00(ZAR) estimated $107.09 (USD)*

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    The Gas Industry in South Africa 2014-05-26

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 5
    2.2. Geographic Position 6
    2.3. Size of the Industry 10
    2.4. Key Success Factors and Pain Points 14
    3. LOCAL 15
    3.1. State of the Industry 15
    3.2. Key Trends 20
    3.3. Notable Players 26
    3.4. Trade 27
    3.5. Corporate Actions 33
    3.6. Regulations 35
    3.7. Enterprise Development and Social Economic Development 40
    4. AFRICA 43
    5. INTERNATIONAL 49
    6. INFLUENCING FACTORS 53
    6.1. COVID-19 53
    6.2. Economic Environment 53
    6.3. Labour 54
    6.4. Environmental Issues 55
    6.5. Technology, Research and Development (R&D) and Innovation 57
    6.6. Government Support 58
    6.7. Input Costs 59
    6.8. Pricing 60
    6.9. Carbon Tax 60
    6.10. New Gas Discoveries 60
    7. COMPETITIVE ENVIRONMENT 62
    7.1. Competition 62
    7.2. Ownership Structure of the Industry 62
    7.3. Barriers to Entry 63
    8. SWOT ANALYSIS 64
    9. OUTLOOK 65
    10. INDUSTRY ASSOCIATIONS 66
    11. REFERENCES 66
    11.1. Publications 66
    11.2. Websites 67
    APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 69
    Manufacturers of Gas 69
    Distributors of Gas via Pipelines 71
    COMPANY PROFILES- MANUFACTURERS OF GAS 73
    African Oxygen (Pty) Ltd 73
    Astron Energy (Pty) Ltd 79
    BP Southern Africa (Pty) Ltd 82
    Engen Petroleum Ltd 85
    National Petroleum Refiners of South Africa (Pty) Ltd 89
    Petroleum Oil and Gas Corporation of South Africa SOC Ltd (The) 91
    Renergen Ltd 95
    Shell and BP South African Petroleum Refineries (Pty) Ltd 98
    COMPANY PROFILES- DISTRIBUTORS OF GAS VIA PIPELINES 102
    Egoli Gas (Pty) Ltd 102
    Gigajoule International (Pty) Ltd 104
    Sasol Gas (Pty) Ltd 107
    SLG (Pty) Ltd 109
    Transnet SOC Ltd 111

    Report Coverage

    The comprehensive report on the South African gas industry examines current conditions, developments and corporate actions as well as factors that influence the success of companies involved in the sector. Comprehensive profiles of 13 institutions include the state-owned PetroSA, which reported a net loss of R1.4bn in 2016/17 and Spring Lights Gas, South Africa’s largest non-integrated piped gas trader. It provides comprehensive information on gas companies including Sasol, which announced it would dispose non-core assets to focus on speciality chemicals, upstream exploration and production and liquid fuel retail and Engen, which entered into a R3.5bn share-swop deal with Vivo Energy. The report deals with important issues affecting the industry including the Integrated Resources Plan, the introduction of carbon tax and the establishment of gas-to-power landfill plants.

    Introduction

    The South African government is committed to the provision of universal access to clean, sustainable and affordable energy by 2030. Given its versatility and low carbon emission profile, gas has been identified as a key component of South Africa’s energy economy. With domestic consumption of 4.5 billion cubic metres (bcm) in 2017, natural gas currently constitutes little more than 3.2% of the nation’s primary energy supply. Through interventions that incorporate the development of both conventional and unconventional forms of gas, including the proposed exploitation of the country’s potential shale gas resources, South Africa’s Department of Energy is seeking to augment the installed capacity of natural gas to 11,930 megawatts (MW), or 16% of total installed capacity, by 2030.However, while some role players still regard South Africa’s shale gas potential as the country’s so-called “silver bullet”, others say that the findings of recent tests conducted in the Karoo Basin appear to indicate that previous estimates were grossly inflated.

    Strengths

    • Gas provides instant energy and is relatively safe and clean-burning.
    • It has a multitude of uses and may be used by domestic, commercial and industrial consumers.
    • The environmental and economic benefits of natural gas make it a viable alternative to other fossil fuels, particularly coal.
    • Transporting gas via pipeline is relatively safe, cost-effective and reliable.

    Weaknesses

    • ?
    • Proven indigenous natural gas reserves are still relatively limited and there is uncertainty concerning the availability and security of supply.
    • The country’s relatively limited gas transmission infrastructure continues to constrain the development of the domestic natural gas market.
    • The local gas industry is not competitive.
    • The oil and gas sector is a high risk, capital intensive industry. Exploration and development costs are prohibitive and players are highly exposed to the volatility of commodity prices and exchange rate fluctuations.
    • There is a shortage of professionals with the requisite technical skills.

    Opportunities

    •  Transitioning low-income earners from coal, paraffin or wood as an energy source, to LPG.
    • Development of LNG-fuelled vehicles and vessels.
    • Importation of LPG and LNG.
    • Offshore gas exploration.
    • On-shore exploration for shale gas and coal bed methane.
    • The availability of sizeable reserves of natural gas in neighbouring countries, notably Mozambique, Tanzania, Namibia and Angola, presents increased opportunities for regional collaboration, including pipeline development.
    • The development of alternative sources of clean energy, such as biogas, including the establishment of landfill-to-biogas plants.

    Threats

    • Downward pressure on the crude oil price, which would have a negative impact on exploration and development activities.
    • Economic pressures could impact adversely on industrial consumption and on the availability of exploration funding.
    • Environmental risks, such as seismic activity.
    • Exploration companies in the shale gas segment continue to face stiff opposition from affected land-owners and environmentalists.
    • Policy and regulatory uncertainty. New legislation effectively provides for the possible nationalisation of South Africa’s oil and gas resources.
    • The escalation of geopolitical tensions, which could threaten global gas supplies.
    • The increased competitiveness of other forms of energy, such as renewables.

    Outlook

    The South African government has reiterated that migration to gas is a strategic imperative for the country. However, given the long-standing policy and regulatory uncertainty that continues to shackle exploration and development of the nation’s gas resources, some commentators warn that South Africa’s transition from a coal-based energy sector to a broad-based gas economy could remain a pipe dream. Other role players are hopeful that South Africa will increasingly capitalise on gas supply opportunities beyond the country’s borders. Addressing the 2018 Mozvest conference, Niall Kramer, CEO of the South African Oil and Gas Alliance (SAOGA), stated: “Cross-border collaboration is one of the best means of invigorating industrialisation in order to fuel job creation and thereby drive economic growth.” Kramer added that through collaboration, South Africa and Mozambique had the potential to evolve into a major global gas and services hub.

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    The Gas Industry in South Africa
    The Gas Industry in South Africa 2018

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.96 (USD)*

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    Historical Reports

    The Gas Industry in South Africa 2024-01-25

    R 9 500.00(ZAR) estimated $535.43 (USD)*

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    The Gas Industry in South Africa 2022-10-20

    R 6 500.00(ZAR) estimated $366.35 (USD)*

    View Report Add to Cart

    The Gas Industry in South Africa 2017-07-14

    R 1 900.00(ZAR) estimated $107.09 (USD)*

    View Report Add to Cart

    The Gas Industry in South Africa 2014-05-26

    R 1 900.00(ZAR) estimated $107.09 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 6
    3. SIZE OF THE INDUSTRY 9
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 14
    4.1.2. Regulations and Government Policies 15
    4.1.3. Enterprise Development and Social Economic Development 20
    4.2. Continental 22
    4.3. International 25
    5. INFLUENCING FACTORS 28
    5.1. Economic Environment 28
    5.2. Government Initiatives 28
    5.3. Input Costs 29
    5.4. Technology, Research and Development (R&D) and Innovation 30
    5.5. Labour 31
    5.6. Cyclicality 33
    5.7. Environmental Concerns 34
    6. COMPETITION 35
    6.1. Barriers to Entry 37
    7. SWOT ANALYSIS 37
    8. OUTLOOK 38
    9. INDUSTRY ASSOCIATIONS 39
    10. REFERENCES 39
    10.1. Publications 39
    10.2. Websites 41
    APPENDIX 1 - SUMMARY OF MAJOR PLAYERS 43
    Manufacturers of Gas 43
    Distributors of Gases via Pipelines 44
    APPENDIX 2 46
    Global Primary Energy Consumption 46
    APPENDIX 3 47
    Total Proved Natural Gas Reserves 47
    COMPANY PROFILES - MANUFACTURERS OF GAS 48
    AFRICAN OXYGEN LTD 48
    BP SOUTHERN AFRICA (PTY) LTD 55
    CHEVRON SOUTH AFRICA (PTY) LTD 57
    ENGEN PETROLEUM LTD 60
    NATIONAL PETROLEUM REFINERS OF SOUTH AFRICA (PTY) LTD 64
    PETROLEUM OIL AND GAS CORPORATION OF SOUTH AFRICA SOC LTD (THE) 66
    RENERGEN LTD 69
    SHELL AND BP SOUTH AFRICAN PETROLEUM REFINERIES (PTY) LTD 72
    COMPANY PROFILES - DISTRIBUTORS OF GASES VIA PIPELINES 75
    EGOLI GAS (PTY) LTD 75
    GIGAJOULE INTERNATIONAL (PTY) LTD 77
    SASOL GAS (PTY) LTD 79
    SLG (PTY) LTD 81
    TRANSNET SOC LTD 83

    Report Coverage

    The detailed report on the South African Gas industry examines current conditions, developments and corporate actions as well as factors that influence the success of companies involved in the sector. Profiles for seven gas manufacturers including state-owned company, PetroSA and Engen Petroleum Ltd are provided. Also profiled are four companies involved in the distribution of gas via pipelines.

    Introduction

    Natural gas is widely regarded as a bridging fuel to a low-carbon economy as it has a better environmental footprint than other fossil fuels. With domestic consumption of 5.1 billion cubic metres in 2016, gas currently constitutes only 3.76% of South Africa’s primary energy mix. However, with over 3GW of gas-fired generation capacity set to be developed in the country by 2025, demand for gas is expected to rise significantly. Although the South African government has reaffirmed that its proposed nuclear build programme remains on the agenda, the Department of Energy has identified the harnessing of both conventional and unconventional forms of gas as a strategic imperative. Tabling her maiden energy budget for the 2017/18 financial year, newly appointed Energy Minister Mmamoloko Kubayi stated that gas was regarded an integral part of South Africa’s energy mix.

    Strengths

    • Gas has a multitude of uses and may be used by domestic, commercial and industrial consumers.
    • Gas provides instant energy and is relatively safe and clean-burning.
    • The environmental and economic benefits of natural gas make it a viable alternative to other fossil fuels, particularly coal.
    • Transporting gas via pipeline is relatively safe, cost-effective and reliable.

    Weaknesses

    • Proposed legislation does little to encourage investment in the sector.
    • Proven indigenous natural gas reserves are still relatively limited and there is uncertainty concerning the availability and security of supply.
    • Shale gas licence holders continue to face stiff opposition from affected land owners and environmentalists over proposed fracking.
    • The country’s relatively limited gas transmission infrastructure continues to constrain the development of the domestic natural gas market.
    • The local gas industry is not competitive.
    • The oil and gas sector is a high risk, capital-intensive industry. Development costs are prohibitive and players are highly exposed to the volatility of commodity prices and exchange rate fluctuations.
    • There is a shortage of professionals with the requisite technical skills.

    Opportunities

    • Development of LNG-fuelled vehicles and vessels.
    • Importation of LPG and/or LNG.
    • Offshore oil and gas exploration has also been encouraged and a number of licences have been awarded by the South African authorities.
    • Shale gas and coal gas methane exploration.
    • The availability of sizeable reserves of natural gas in neighbouring countries, notably Mozambique, Tanzania, Namibia and Angola, presents increased opportunities. Pipeline development between neighbouring countries is also a possibility.
    • The development of alternative sources of clean energy, such as biogas.
    • Transitioning low-income earners from coal, paraffin or wood as an energy source, to LPG.

    Threats

    • Environmental risks, such as seismic activity.
    • Political and regulatory uncertainty. New legislation effectively provides for the possible nationalisation of South Africa’s oil and gas resources.
    • Recessionary pressures could impact adversely on industrial consumption and on the availability of exploration funding.
    • The escalation of geopolitical tensions, which could threaten global gas supplies.
    • The increasing competitiveness of renewable energy sources.

    Outlook

    With the Karoo Basin shale gas exploration licensing process underway, South Africa finds itself at a critical juncture. Role players say that if exploration activity yields positive finds, indigenous shale gas could be commercialised within ten to fifteen years. However, environmental lobbyists warn that the country’s quest to achieve energy security may come at a high price and that not enough has been done to address concerns relating to water security. While stakeholders are generally positive about the diversification of South Africa’s energy mix to include both conventional and unconventional forms of gas, some role players caution that during the next decade South Africa will remain largely dependent on imported natural gas to fuel the gas-fired power plants that are in the pipeline. They further warn that the country’s relatively underdeveloped gas transmission infrastructure will constrain the growth of the domestic gas market. Given the prevailing climate of uncertainty and the escalation of political tensions, investment in the sector is expected to remain subdued during the period leading up to the South African General Elections in 2019.

    Read More..
    The Gas Industry in South Africa
    The Gas Industry in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $107.09 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.96 (USD)*

    Buy Now +

    Historical Reports

    The Gas Industry in South Africa 2024-01-25

    R 9 500.00(ZAR) estimated $535.43 (USD)*

    View Report Add to Cart

    The Gas Industry in South Africa 2022-10-20

    R 6 500.00(ZAR) estimated $366.35 (USD)*

    View Report Add to Cart

    The Gas Industry in South Africa 2018-09-17

    R 1 900.00(ZAR) estimated $107.09 (USD)*

    View Report Add to Cart

    The Gas Industry in South Africa 2014-05-26

    R 1 900.00(ZAR) estimated $107.09 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 8
    4. STATE OF THE INDUSTRY 13
    4.1. Local 13
    4.1.1. Corporate Actions 16
    4.1.2. Regulations 19
    4.1.3. Enterprise Development and Social Economic Development 22
    4.2. Continental 23
    4.3. International 26
    5. INFLUENCING FACTORS 29
    5.1. Economic Environment 29
    5.2. Government Initiatives 30
    5.3. Operating Costs 31
    5.4. Technology, Research and Development (R&D) and Innovation 31
    5.5. Labour 33
    5.6. Cyclicality 34
    5.7. Environmental Concerns 34
    6. COMPETITION 36
    6.1. Barriers to Entry 37
    7. SWOT ANALYSIS 37
    8. OUTLOOK 39
    9. INDUSTRY ASSOCIATIONS 39
    10. REFERENCES 41
    10.1. Publications 41
    10.2. Websites 42
    APPENDIX 1 44
    Proven Global Gas Reserves 44
    APPENDIX 2 45
    Global Gas Trade in 2015 and 2016 45
    APPENDIX 3 46
    Global Trade Movements by Pipeline – 2016 46
    APPENDIX 4 47
    Global Trade Movements - LNG 47
    COMPANY PROFILES - THE MANUFACTURE OF GAS 48
    AFRICAN OXYGEN LTD 48
    BP SOUTHERN AFRICA (PTY) LTD 54
    CHEVRON SOUTH AFRICA (PTY) LTD 56
    ENGEN PETROLEUM LTD 59
    NATIONAL PETROLEUM REFINERS OF SOUTH AFRICA (PTY) LTD 62
    PETROLEUM OIL AND GAS CORPORATION OF SOUTH AFRICA SOC LTD (THE) 64
    RENERGEN LTD 67
    SHELL AND BP SOUTH AFRICAN PETROLEUM REFINERIES (PTY) LTD 69
    COMPANY PROFILES - DISTRIBUTION OF GASES, LIQUIDS, SLURRY AND OTHER COMMODITIES VIA PIPELINES 72
    EGOLI GAS (PTY) LTD 72
    GIGAJOULE INTERNATIONAL (PTY) LTD 74
    SASOL GAS (PTY) LTD 76
    TRANSNET SOC LTD 78

    Introduction

    This report focuses on the extraction and manufacture of gases, notably the production of gaseous fuels, as well as the distribution of gases via a system of pipelines to household, industrial, commercial or other users. Although natural gas comprised little more than 3% of South Africa’s total primary energy consumption in 2012, the tide is turning, with stakeholders venturing to predict that the country is entering the ‘Golden Age of Gas.’ The potential of shale gas is widely viewed as a ‘game-changer’ in South Africa, with Government affirming the potential of the gas industry to provide energy security for the country, while boosting the local economy through job creation, direct investment and business development. Delivering the opening address at the African Mining Indaba that was held in Cape Town in February 2014, Mineral Resources Minister, Susan Shabangu, confirmed that South Africa would “move ahead decisively, yet responsibly with the exploration of shale gas.” However, the passing of the Mineral and Petroleum Resources Development Amendment Bill by the National Assembly on 12 March 2014, has elicited a robust response from South Africa’s opposition parties, which warn that the new legislation effectively allows for the nationalisation of South Africa’s oil and gas resources. Industry has also voiced concern, with the Offshore Petroleum Association of South Africa (OPASA) warning that the legislation will have a “chilling effect” on South Africa’s fledgling oil and gas sector.

    Strengths

    • Gas provides instant energy and is relatively safe and\nclean-burning
    • It has a multitude of uses and may be used by domestic,\ncommercial and industrial consumers.
    • The environmental and economic benefits of natural gas\nmake it a viable alternative to other fossil fuels, particularly coal.
    • Transporting gas via pipelines

    Weaknesses

    • Proved indigenous natural gas reserves are still relatively\nlimited and there is uncertainty regarding the security of supply.
    • Shale gas licence holders continue to face stiff opposition from affected land-owners and environmentalists over proposed fracking.
    • The local gas industry is not competitive and new regulations do little to encourage investment.
    • The oil and gas sector is a high risk, capital intensive industry. Development costs are prohibitive and players are highly exposed to the volatility of commodity prices and exchange rate fluctuations.
    • The shortage of skilled labour.

    Opportunities

    • Offshore oil and gas exploration has been encouraged and\na number of licences have been awarded by the South\nAfrican authorities.
    • Research indicates that South Africa’s shale gas and coal\nbed methane reserves could be substantial. The South\nAfrican government has approved both shale gas and coal\ngas methane exploration.
    • The availability of sizeable reserves of natural gas in\nneighbouring countries, notably Mozambique, Tanzania,\nNamibia and Angola, presents increased opportunities.\nPipeline development between neighbouring countries is\nalso a possibility.
    • The conversion of low-income earners, who have\nhistorically used coal, paraffin or wood as an energy\nsource, to LPG
    • The development of alternative sources of energy, such as\nbiogas.

    Threats

    • Environmental risks, such as seismic activity.
    • Political and regulatory uncertainty. New legislation effectively provides for the possible nationalisation of South Africa’s oil and gas resources.
    • Recessionary pressures could impact adversely on industrial consumption and on the availability of exploration funding.
    • The escalation of geopolitical tensions, which could threaten global gas supplies.

    Outlook

    The prospects of the South African gas industry, according to numerous stakeholders, have never been more positive and speculative interest in South Africa’s potential offshore hydrocarbon resources is unprecedented. Almost all of the country’s offshore acreage is currently licensed and the presence of three of the world’s super major oil and gas companies in the local exploration arena has fuelled significant interest. Several stakeholders believe that it is simply a matter of time before exploration activity yields positive discoveries. South Africa’s largest proven undeveloped field, Offshore Block 2A, Ibhubesi gas field, is expected to start producing in 2016 and will contribute to the proposed diversification of the country’s energy mix. Analysts predict an uptake in activities related to the extraction of methane from coal beds and despite environmental concerns relating to fracking, the South African government has cleared the way for shale gas exploration. However, many analysts believe that the recent passing of the Mineral and Petroleum Resources Development Amendment (MPRDA) legislation by the National Assembly, which effectively allows for the nationalisation of South Africa’s gas resources, may discourage future investment in the country’s nascent gas industry.

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    3. SIZE AND STRUCTURE OF THE INDUSTRY 2
    3.1. Geographic Position 2
    3.2. Size of the Industry 4
    4. STATE OF THE INDUSTRY 6
    4.1. Local 6
    4.1.1. Corporate Actions 9
    4.1.2. Regulations 11
    4.1.3. Enterprise Development and Social Economic Development 13
    4.2. Continental 13
    4.3. International 15
    5. INFLUENCING FACTORS 16
    5.1. Industry Specific Issues 16
    5.1.1. General Trends 16
    5.1.2. Input Costs 17
    5.2. Economic Environment 17
    5.3. Labour Resources 17
    5.3.1. Representatives 17
    5.3.2. Safety 17
    5.3.3. Skills and Training 17
    5.4. Technology 18
    5.5. Innovation and R & D 18
    5.6. Environmental Concerns 18
    6. COMPETITION 19
    6.1. Barriers to Entry 19
    7. SWOT ANALYSIS 20
    8. OUTLOOK 20
    9. INDUSTRY ASSOCIATIONS 21
    10. REFERENCES 21
    10.1. Publications 21
    10.2. Websites 22
    APPENDIX 1 23
    Global Gas Reserves 23
    APPENDIX 2 24
    International Gas Trade – 2011 and 2012 24
    APPENDIX 3 25
    Global Trade Movements by Pipeline - 2012 25
    APPENDIX 4 26
    Global Trade Movements - LNG 26
    ORGANOGRAM 4120 27
    The Manufacture of Gas 27
    COMPANY PROFILES 28
    A-GAS (SOUTH AFRICA) (PTY) LTD 28
    AFRICAN OXYGEN LTD 29
    BP SOUTHERN AFRICA (PTY) LTD 32
    CHEVRON SOUTH AFRICA (PTY) LTD 33
    EASIGAS (PTY) LTD 35
    ENGEN PETROLEUM LTD 37
    NATIONAL PETROLEUM REFINERS OF SOUTH AFRICA (PTY) LTD 39
    PETROLEUM OIL & GAS CORPORATION OF SA (SOC) LTD (THE) 41
    SHELL & BP SOUTH AFRICAN PETROLEUM REFINERIES (PTY) LTD 43
    ORGANOGRAM 7130 45
    Distribution of Gases via Pipelines 45
    COMPANY PROFILES 46
    EASIGAS (PTY) LTD 46
    GIGAJOULE AFRICA (PTY) LTD 48
    REATILE GAZ (PTY) LTD 49
    REATILE-REDIGAS (PTY) LTD 50
    SASOL GAS LTD 51
    TOTALGAZ SOUTHERN AFRICA (PTY) LTD 53
    TRANSNET SOC LTD 54

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