Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases
Production and revenue in chemical manufacturing, South Africa’s third-largest manufacturing sector, declined in the initial months after the March 2020 imposition of a lockdown to tackle the coronavirus pandemic, but recovered quickly subsequently, although recent production has largely remained below 2015 levels. Karoo shale gas reserves and two recent gas discoveries look set to transform South Africa’s reliance on depleting local gas reserves and gas imports, and could potentially provide abundant and low cost inputs into the chemical industry. Efforts are underway to develop a green hydrogen sector.
Significant local gas reserve discoveries include shale gas in the Karoo and potentially large offshore discoveries. Total announced in October 2020 that it had made a second significant gas condensate discovery 175km off the southern coast of South Africa in the Outeniqua Basin. This follows its 2019 announcement of a potential 1 billion barrels of wet gas in Brulpadda off the south coast. These discoveries could decrease the costs of raw materials used in the production of chemicals and reduce energy costs, increase local gas reserves which are near depletion and help provide South Africa with energy security.
While demand for dry ice has fallen since the onset of the pandemic, demand could grow when the vaccine roll-out gains momentum. Pfizer and Moderna’s vaccines are required to be stored in sub-zero temperatures. The use of dry ice for vaccine storage could provide some relief for dry ice manufacturers under pressure due to the alcohol ban, decline in tourism, closure of hotels, restaurants and beaches and suspension of major sports and other events.
This report focuses on the manufacture of basic chemicals, speciality chemicals and industrial gases, including additional coverage of the manufacture of dry ice. It includes comprehensive information on the state and size of the sector, trade and other statistics, and recent developments. There are profiles of 25 companies including major players such as Sasol, Omnia and Foskor. This report includes profiles of dry ice companies such as Sidewinder Dry Ice and Gas, Dry Ice International and Dry Ice Solutions.