Astron Energy has reiterated its commitment to boosting South Africa’s refining capacity as the local refinery of crude oil has dwindled over the years amid major structural changes in the industry.
Suzanne Pullinger, spokesperson for Astron Energy, told Business Report on Friday that SA has gone from refining the bulk of its petroleum product needs to now importing the majority of finished product such as petrol and diesel.
“Astron Energy is a proudly South African company and we are committed to South Africa, its people, and the socio-economic development of the country,” Pullinger said.
“As such, we have invested significantly in restarting and upgrading our refinery in Milnerton which supports jobs, livelihoods, and small businesses in our supply chain and surrounding communities. Our refinery also contributes to the security of supply of products in South Africa.”
Astron Energy manages the Caltex brand under licence from Chevron, and manufactures and sells Caltex branded lubricants.
With regard to the retailing of fuel, Pullinger said Astron Energy understood the pressures that the high fuel price placed on consumers and also the broader economy.
“We are in constant engagement with key stakeholders, including the Department of Minerals and Petroleum Resources. But we understand that the world of fuel has changed,” she said.
“A fuel brand focused solely on a fuel offering simply is not going to cut it. We have put a lot of work into redefining our fuel and non-fuel retail offerings and are working hard to enhance our product and partnership offerings in this fresh and energised space.”
Astron Energy said it continued to engage with all role-players around areas of mutual interest, including the fuel price, clean fuels and ensuring security of supply.
Asked about its expectations for the new Minerals and Petroleum Resources Ministry led by Minister Gwede Mantashe, Pullinger said Astron Energy was looking forward to continuing its constructive relationship with the department.
Delivering the department’s Budget Vote last week, Mantashe said the National Development Plan (NDP) envisioned a South Africa with an adequate supply of liquid fuels by 2030.
He said the department has through the Central Energy Fund (CEF) concluded a transaction on the sale of assets located at the Sapref Precinct in a bid to realise this vision and in response to the premature closures of oil refineries.
Additionally, the Strategic Fuel Fund, a subsidiary of CEF has acquired the majority stake in a Liquified Petroleum Gas (LPG) company as well as the storage terminal that was previously owned by BP in Cape Town to store and supply diesel.
“While we appreciate the return to full operation of the Cape Town refinery, we are also mindful of the need for investments in a new refining capacity, particularly in light of the recent oil and gas discoveries both in the South African and Namibian waters,” Mantashe said.
BUSINESS REPORT