OVERVIEW
Oil, gas and petrochemicals South African ports are gearing up to service the oil and gas industry.
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atural 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 north-west of Saldanha is estimated to have reserves of 850-billion cubic feet of gas and the Bredasdorp Basin one-trillion cubic feet but getting to the gas has been difficult. In addition, massive new fields are being exploited off the coast of Mozambique, opening up opportunities in the region that never existed before. Anadarko Petroleum, a US company, decided in 2019 to go ahead with a $20-billion project to build a liquid natural gas (LNG) plant in Mozambique. The projected spinoffs for the South African economy are estimated to top R7-billion. Part of the projected benefit for South Africa will be through the access to the project that will come with the expected involvement of the Export Credit Insurance Corporation of SA (ECIC). ECIC intends underwriting Standard Bank’s financing of this and other projects and part of the conditions of such financing deals is market access for South African firms. A new addition to South Africa’s pipeline network is a pipe to get natural gas from Mozambique to Gauteng. SacOil’s R90-billion project aims to deliver gas to Johannesburg and the nearby towns in 2020. Large quantities of oil are transported around Cape Point every year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the SOUTH AFRICAN BUSINESS 2020
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SECTOR INSIGHT Coastal Special Economic Zones are investing in gas plants. Middle East. Irrespective of market volatility, the long-term prospects for shipping and oil and gas are strong enough for national government to pursue Operation Phakisa (which includes a strong maritime economy element) and for Transnet National Ports Authority to spend heavily on upgrading the nation’s ports. In the Western Cape thousands of direct jobs have been created in the ship and rig repair sector of the oil and gas business and the Saldanha Bay Industrial Development Zone is being
