The Fuels Industry Imbizo, according to our Minister of Mineral and Petroleum Resources, Gwede Mantashe, came at a critical time for the petroleum sector, both globally and domestically, reminding us that “energy security cannot be taken for granted”. Despite the ongoing global challenges, however, he said South Africa has maintained fuel supply stability. This Imbizo, he said, “provides us with an opportu- nity to engage frankly about the future of our industry and to collectively shape a petroleum sector that re- mains secure, competitive, sustainable, and responsive to the changing energy landscape.” “We must recognise that South Africa’s energy transition is not about abandoning one energy source in favour of another. It is about building a diversified and resilient energy mix that supports economic growth, industrial development, energy security, and environmental sustainability,” said Mantashe. “Conventional fuels will continue to play an important role in our economy for decades to come. At the same time, emerging energy sources must be developed and integrated into our energy system.” He went on to say that the development of a sus- tainable biofuels industry has the potential to support agricultural development, create employment oppor- tunities in rural communities, stimulate new invest- ment, and contribute meaningfully to the reduction of greenhouse gas emissions. The Minister of Agriculture, he said, has expressed strong support for the biofuels programme. This gives confidence about the avail - ability of feedstock to support the industry’s growth, while regulatory certainty conducive to investment has now been established through the publication of the regulated biofuels price last year. “We now look to the industry to partner with government in developing this strategic sector and ensuring its long-term success,” he said. On the development side, Mantashe cited the Upstream Petroleum Resources Development Act (UPRDA), which is now ready for publication and implementation. The Act establishes a dedicated regu- latory framework for the upstream petroleum sector, “thereby creating a more appropriate and investment- friendly environment for oil and gas development”. Following a comprehensive vulnerability assess- ment of South Africa’s strategic petroleum stocks, areas requiring urgent attention include strengthening stockholding arrangements and increasing domestic refining capacity. The resulting draft Strategic Petroleum Stocks Policy proposes a mixed stockholding model under which the unified South African National Petroleum Company (SANPC) will maintain strategic reserves The future of energy mobility
Peter Middleton
equivalent to 60 days of net imports in both crude oil and refined products, “a major step towards strength - ening South Africa’s resilience against future supply disruptions”. “We are equally encouraged by developments at Island View: with the issue of leases now finalised, long-term tenure has been secured,” he noted. On the refining side, he said: “If we are serious about improving our energy security, reducing our vulnerability to external shocks, and strengthening our economic sovereignty, we must accelerate exploration and development of our own oil and gas resources. “South Africa cannot indefinitely remain a price taker in global energy markets. We must position ourselves to become producers where commercially viable resources exist.” Hear, hear. He went on to invite attendees to partner with South Africa’s National Petroleum Company (SANPC) to support the development of local refining capacity and to advance exploration activities to unlock South Africa’s petroleum potential. “Let us use this Imbizo to identify practical solu- tions, strengthen partnerships, unlock investment, and build a petroleum sector that is secure, competitive, transformed, and capable of supporting South Africa’s developmental objectives. Working together as gov- ernment and industry, we can ensure that the future of energy mobility is not something we merely react to, but something we actively shape,” he concluded. Following Gwede Mantashe’s opening address, an in-depth panel discussion examined the implications of Clean Fuels II regulations for the petroleum industry, which will come into force on 1 July 2027 to align South Africa with Euro 5 vehicle emission requirements. “How ready are we?” was the opening question for the panel discussion of Fuels Industry leaders. Dumisani Bengu, Chairperson of the Fuels Industry Association and MD of Sasol Oil, noted that Sasol has now completed a R6-billion upgrade of its Sasol Secunda refinery plant to meet Euro 5 unleaded clean fuel specifications: 10 ppm sulphur, 1% benzene, 35% aromatics, and 18% olefins. In addition, a further R3 billion has been committed to upgrading the Natref refinery to meet these same specifications. MCA is proud to have been the media partner of this important event. Sasol, in particular, is a South African success story in the fuels and chemicals sec- tors. The current crisis brings into sharp focus how important its technology might be for securing our energy security, while enabling the broader transport industry to transition to a carbon-free future afford- ably and sustainably.
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