Since 2020, South Africa has lost around 50% of its crude oil refining capacity due to refineries having been decommissioned or converted into storage facilities.

South Africa currently has only about 35% of its original refining capacity remaining, which means it has to import the balance of its fuel needs.

The security of supply is, of course, far from a given. Refineries are essential in ensuring security of fuel supply, especially in a context where supply chains are continually challenged by global disruptions, geopolitical tensions, and local infrastructure limitations.  

This directly impacts security of supply as it leaves the country subject to the uncontrollable variables.  Factors such as fluctuations in global oil prices, domestic energy policy changes, and the delicate balance of supply and demand within a highly competitive market all impact the reliability of fuel supply.  

Factors such as geopolitics, balance of payments and lack of supporting infrastructure to store and transport imports all contribute to a precarious situation. That is aside from the fact that thousands of jobs in the downstream petroleum industry in South Africa have effectively been outsourced. 

Critical Investment

Astron Energy, a fuel company with a significant presence and socio-economic impact in South Africa, operates a crude oil Refinery in Milnerton in Cape Town.

In addition, it operates a network of over 800 retail sites in South Africa, as well as a small network in Botswana. It also operates a lubricants manufacturing plant in Durban, and a product supply network from 15 terminals across Southern Africa

Astron Energy is a proudly South African company. The rebrand of it’s existing network of forecourts to Astron Energy is a huge undertaking and forms part of the company’s ambition to become South Africa’s next biggest fuel brand.

Astron Energy, through its majority shareholder Glencore PLC, has also made significant investments into its 100,000 barrels per day Refinery as part of the company’s commitment to South Africa, its people and the economy.

Astron Energy CEO, Thabiet Booley said: “As the only crude oil Refinery in the south-west of South Africa, it is a significant contributor in ensuring security of supply to South Africa.  ”

Booley said that the company has made significant investments in the plant to improve efficiencies and work towards producing products in line with international standards.

“This includes the stepped-up production of Very Low Sulphur Marine Fuel and as the only local producer of VLSFO, this makes us a key player in this sector,” he added. “We are also making continued investments into our Refinery with a long-term view to producing clean fuels in line with proposed legislation.”

“Our Refinery is operating at full capacity, producing the full spectrum of products including petrol, diesel, jet fuel and low sulphur marine fuel, among others, which bodes well in terms of ensuring security of supply and being able to support the local economy.”

Key Socio-Economic Contributor

The Astron Energy Refinery is also a key part of the company support for key sectors of the economy such as mining, marine and agriculture among others.

In a nation where energy security, job creation, and sustainable development are critical issues, the role of refineries—particularly those making strides in clean fuel production—cannot be overstated.

“We are a significant contributor and key enabler to the mining sector in South Africa through our commercial offering which includes the supply of fuel, oil and lubricants for a wide range of use across the mining sector.”

The Refinery is also a key economic driver in the Western Cape, supporting several  direct and indirect jobs, as well as small businesses through innovative empowerment programmes such as the Astron Energy Development Fund (AEDF) which seeks to create sustainable and meaningful change and prosperity for micro, small and medium-sized enterprises (SMME) along the Astron Energy value chain.

Astron Energy’s stated purpose is Securing our Future Together and the company understands that its own long-term sustainability is intricately tied to the wellbeing of its host communities around its facilities. 

“We know the continued success and sustainable growth of our company is intrinsically linked to the success of the country in which we operate,” Booley said, adding that the company has invested over R21 million in youth empowerment programmes, with a strong focus on STEAM (Science, Technology, Arts and Maths), Coding and Robotics and other skills needed for the future.

The company also invests in the provision of free or very affordable internet access to communities to help bridge the digital divide, as well as providing schools with the necessary digital tools to succeed.

Booley said Astron Energy’s vision is to be a leading African energy company, enabling growth, enriching lives, and delivering shared value to consumers, customers and communities

“We are committed to South Africa, its people and the economy, and our continued investments into our Refinery, our retail network, our people, and our communities is testament to this.”

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