Petroleum producers seek permission to coordinate operations, avoid shortages
South Africa’s petrochemicals sector has had a difficult year. Glencore’s plant in Cape Town shut down in February and the sector is facing major challenges with natural gas feedstock shortages. All of the major players in the sector are reevaluating operations in the country. The energy sector already has a 30% unemployment rate and this could worsen if the sector doesn’t see significant turnaround soon. The industry’s representative body, the South African Petroleum Industry Association has applied for specific exemption from the Competition Act. This exemption would allow producers to coordinate shutdowns to prevent critical shortages in the country. – Melani Nathan
Sasol sells Mozambique power stake to pay down debt
Earlier this year, Sasol held a sustainability roundtable. In its presentation, the petrochemicals company outlined a shift away from fossil fuels and towards natural gas in its feedstock. This, it said, is a critical part of its future. However Sasol also admitted that South Africa is fast running out of local natural gas supplies. The refinery sector in the country is said to be in dire straits as PetroSA’s 45,000 barrel-a-day plant is running out of feedstock and Glencore’s Cape Town refinery has been shut since February this year. Combined they would take over a fifth of the nation’s processing capacity offline. Petroliam Nasional, Sasol and Royal Dutch Shell are reviewing their South African operations. In its recent sustainability presentation, Sasol said that it has little choice but to secure natural gas supplies from neighbouring countries. CEO Fleetwood Grobler said that imports from Mozambique were the most likely
Eskom faces more dark days as profits dwindle
Days after announcing that it will have to resume rotational power cuts, South Africa’s power utility has released a worrying statement about its financial standing. The state owned company says it has managed to make a small profit, coinciding with the winter months when it usually hikes tariffs. The power producer wasn’t lucky enough to escape the lockdown unscathed and saw a 10% drop in sales for the first half. A fourth consecutive year of financial losses looms as the company battles unsustainable debt levels and ageing infrastructure.- Melani Nathan
Eskom forecasts R22-billion full-year loss techcentral.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from techcentral.co.za Daily Mail and Mail on Sunday newspapers.
NPD calls for more cash to cope with higher demands, population thenelsondaily.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thenelsondaily.com Daily Mail and Mail on Sunday newspapers.