South Africa’s New State-Owned Petroleum Company Eyes Fuel Station Expansion
The newly established South African National Petroleum Company (SANPC) is exploring opportunities to enter the country’s fuel retail market, potentially distributing gasoline, diesel, and petrochemical products nationwide.
Launch of a National Energy Champion
The SANPC officially commenced operations on 14 May 2025 after receiving assets and funding from the Central Energy Fund. With R5 billion allocated for its phased operationalization, the state-owned company aims to strengthen South Africa’s energy security and drive economic transformation.
“We are building a high-performing, future-fit national energy champion that will deliver long-term value for all South Africans,” declared SANPC chairperson Sipho Mkhize. “This isn’t just another company – it’s a national asset embodying our vision for a modernized energy sector.”
Four-Pillar Operational Strategy
The SANPC will operate across the entire energy value chain through four key divisions:
1. Upstream Operations
Involving exploration, drilling and extraction of crude oil and natural gas reserves.
2. Storage Operations
Managing South Africa’s strategic crude oil reserves and commercial storage facilities.
3. Midstream Operations
Handling transportation, wholesale marketing and logistics of petroleum products.
4. Downstream Operations
Refining crude oil and distributing finished products including potential retail fuel station operations.
The company reportedly has R67 billion worth of projects in development, though specific plans for fuel station expansion remain undisclosed.
International Oil Companies Exit South Africa
The SANPC’s market entry coincides with Shell’s planned exit from South Africa’s downstream sector. The energy giant is selling approximately 600 fuel stations and related assets valued at $1 billion.
Potential buyers include Abu Dhabi National Oil Company (Adnoc) and Swiss commodities trader Gunvor, with previous interest shown by Puma Energy, Sasol and PetroSA.
This follows Shell’s 2022 sale of its SAPREF refinery stake to the Central Energy Fund for just R1, marking a strategic withdrawal from less profitable South African operations.
This article was first published by Daily Investor and is reproduced with permission. Original source: MyBroadband