By embracing change and innovation, PetroSA is opening up new horizons for South Africa’s energy sector.
As the leading economic power in Africa, it’s no surprise that South Africa is a key player in the African oil industry. Liquid fuels are an important component of its energy sector, with the 2012 BP Statistical Energy Survey revealing that, in 2011, South Africa consumed an average of 547,250 barrels of oil per day.
The history of the oil industry in South Africa can be traced back to 1884, when the first oil company was established in Cape Town with the purpose of importing refined products. In the years since, the industry has evolved greatly to the point where today the country is responsible for processing approximately 20 million tonnes of crude oil per annum.
Formed in 2002, upon the merger of Soekor E and P Limited, Mossgas Limited and parts of the Strategic Fuel Fund, the Petroleum Oil and Gas Corporation of South Africa (PetroSA) is the national oil company. A subsidiary of the state-owned Central Energy Fund, the company holds various assets that span the petroleum value chain.
In addition to operating the FA-EM, South Coast gas fields, and the Oribi and Oryx oil fields, PetroSA is also responsible for the exploration and production of oil and natural gas from the ORCA oil rig and the production of synthetic fuels from offshore gas at what is one of the world’s largest gas-to-liquid (GTL) refineries in Mossel Bay.
PetroSA’s GTL refinery produces ultra-clean, low-sulphur, low-aromatic synthetic fuels and other high-value products that are converted from natural methane-rich gas. This gas then condensates via the use of the refinery’s unique GTL Fischer Tröpsch technology.
PetroSA is recognised in the industry as a pioneer when it comes to petrochemical research and development. With the support of external partners from around the world, its specialists have built a reputation based on their innovative thinking, technical expertise and proven ability to execute development projects. Upon its opening in 1992, the Mossel Bay refinery was the first in the world to use GTL technology on a commercial scale and since then, only seven other GTL refineries have been commissioned in the world.
The company continues to invest heavily in new processes and technologies, signing a sponsorship agreement in 2010 with the University of the Western Cape (UWC). This agreement led to the establishment of the PetroSA Synthetic Fuels Research Centre at the UWC. It also resulted in the company relocating its conversion of olefins to distillates (COD) pilot plant from Mossel Bay to the university where it stands today in a custom-built laboratory.
COD technology is beginning to attract significant attention within the industry for its ability to produce some of the cleanest fuels available, using an environmentally friendly process. As the profile of this technology rises, so too does that of PetroSA by being the operator of the only COD plant in the world.
The actual COD process involves synthesising petrol and diesel by adding short-chain, unsaturated carbons in order to form longer chain hydrocarbons in the petrol and diesel boiling range. This is carried out at relatively high temperatures and pressures over a catalyst.
Today, COD is recognised as being a rapidly emerging fuel technology of the future. This comes at a time during which rising oil prices are intensifying the demand for cheaper raw materials and more efficient, cost-effective processes. At the same time, global trends show an accelerating demand for high quality diesel and diesel produced using COD technology is regarded as being of exceptional quality.
Among its many important strengths, COD produces relatively pure fuels that are low in sulphur and aromatics, while at the same time meeting the most stringent of international specifications. These fuels possess much better exhaust emission properties than conventionally produced equivalents and this makes them particularly suitable as blend materials for conventional and bio-derived fuels. Furthermore, COD fuels have excellent cold flow properties, making them highly effective when used in countries that experience cold winters.
With the future in mind, PetroSA has reached an agreement with the UWC that will allow it to achieve two key objectives. The first is to further develop COD and its associated technologies, while the second is to help develop South Africa’s human capital.
Among the core strategic functions of the company are to make it possible for the government of South Africa to improve the supply of fuel, oil and gas to the country, mitigate the impact of oil price variations, drive transformation initiatives, manage the country’s contingency crude reserves and strategic petroleum assets, and access upstream petroleum assets.
In addition to these functions, the company also boasts a strategic objective it calls Our Vision 2020. The ultimate aim of this is to become a fully integrated, commercially competitive national oil company, supplying at least 25 percent of South Africa’s liquid fuel needs by 2020.
There are several ways that PetroSA plans to achieve this. These include sustaining the Mossel Bay GTL refinery as a profitable operation and using it as a platform to sustain the company. In addition, the company will continue to ensure all of its operations and activities are carried out in line with the highest health, safety, quality and environmental standards as it grows its business into a significant industry player that can guarantee the security of South Africa’s energy supply.
Written by Will Daynes, research by Robert Hodgson
PertoSA-Africa.OilGas-Jan13-Bro-s.pdf
