3 of the latest developments in South Africa’s oil and gas market

South Africa’s oil and gas market is ever-changing with many companies investing billions into new drilling projects and campaigns. The summer of 2020 saw the arrival of a massive oil rig in Cape Town, as a part of a $400 million deal. It was a huge project that received positive support from the government. More recently, the country published an updated NDC draft outlining plans to reduce its greenhouse gas emissions by 2030, and there are various proposals for new renewable energy projects. South Africa relies heavily on crude oil and while the COVID-19 pandemic disrupted much of the growth in crude oil production, some key developments are happening right now that signal a more positive future.

Offshore gas discoveries

The recent gas discovery on the south coast of Mossel Bay has been met with widespread acclaim and excitement for South Africa’s upstream oil and gas sector. With the country’s oil and gas demand having grown more than can be supplied, this discovery is excellent news for the sector and South Africa’s economy. Increased oil and gas production would mean South Africa could rely less on imports, create further job opportunities in the sector, and reduce the need for coal production. This discovery follows an earlier find at Brulpadda and it was estimated that the area could hold around 1-billion barrels of gas. These discoveries could present huge opportunities for growth in South Africa, paving the way for a stronger future.

New plans for green hydrogen mobility

In pursuit of establishing a green economy in South Africa, Sasol and Toyota South African Motors have agreed to develop a green hydrogen mobility system. The agreement between both companies will see them build a hydrogen refueling infrastructure along the National Highway 3, which is one of South Africa’s main freight corridors. The ambitious plan is part of a wider goal to contribute to a greener future for the global economy, as well as providing better energy security in South Africa. Toyota is currently leading the way in the automotive sector as a zero-emission hydrogen vehicle supplier, so the partnership remains a major step forward.

South Africa’s oldest refinery

One of the biggest, most recent developments in South Africa’s oil and gas scene was the announcement that The Engen oil refinery will be converted into a storage terminal that will house and import cleaner fuels. Situated on the east coast of the city of Durban, it’s the country’s oldest refinery but has become unsuitable for long term use. As a result of the pandemic, many refineries around the world have suffered financially. Also, the global move away from traditional fuels has threatened refineries in recent years. A number of refineries have been shut down in many other parts of the world, so the Engen refinery conversion is just one example of the ongoing changes in the oil and gas sector. The new import and storage terminal is expected to be commissioned in the second half of 2023.

These developments will help stimulate economic growth and recovery for South Africa. The oil and gas sector is a complex market and new advancements will continue to shape the sector.

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At TRS Staffing, we have an excellent team of recruitment consultants with years of experience recruiting into the oil and gas sector. We’re knowledgeable in a range of areas, including mining, chemicals and renewables. We pride ourselves on our expertise and our ability to deliver a quality and reliable service. Our team is proactive in building relationships with clients and candidates. We’re constantly up-to-date on all the changes in the oil and gas market. Our South African offices are located in Durban and Johannesburg. Contact us today if you’re looking to recruit professionals for oil and gas roles.