Refers to the intermediate stage in the oil and gas industry, focusing on the transportation, storage, and wholesale marketing of crude oil, natural gas, and refined products. It involves pipelines, tankers, rail, and storage facilities that connect upstream extraction to downstream processing and distribution.
Be a developer, operator, and owner of major energy infrastructure across the energy value chain for market entry and transmission and to pursue Liquefied Natural Gas (LNG) regasification.
Maximize the State’s economic benefit from the exploitation of petroleum resources through energy security, industrialization, and infrastructure development.
Champion the aggregation of energy products to ensure security of energy supply; and
Providing for middle and downstream petroleum, petroleum products and gas supply.
MIDSTREAM
With the ever-growing demand for natural gas, South Africa is set to experience a gas deficit in the coming years. Despite significant gas developments off the coast of Southern Africa, supply constraints continue to prohibit South Africa’s access to natural gas.
The ROMPCO pipeline is currently the only operational transnational gas pipeline, with its reach furthered through support from the Lily pipeline. Although additional gas transmission infrastructure in South Africa exists, it will be insufficient to cater to the increasing demand for the product. Historically, iGas has been a successful yet inactive custodian of South Africa’s gas infrastructure. In the wake of the increase in local demand for natural gas, there is a need for SA NPC to become an active participant in gas infrastructure.
Refined Product
Since 2009, South Africa has experienced an 11% year on year growth in imports of fuel relative to local market production. This increase has been driven by a shortage of local refinery capacity and the simultaneous increase in demand for refined product.
Refining capacity in South Africa shows no signs of attracting investment, with IOCs pulling out of manufacturing capacity, and many small to mid-scale refineries being converted to storage units. SA NPC will need to ensure sufficient access to refined product, and in doing so, fulfil its mandate of providing energy security to South Africa.