Oil and gas to fuel West Coast growth

Online since 22.03.2018 • Filed under Oil & Gas • From Issue 7 - March to August 2018 page(s) 70-71
Oil and gas to fuel West Coast growth

The oil and gas sector is the fastest growing in South Africa, and a slew of recent announcements show that the vision for the Saldanha Bay in the

Western Cape is already bearing fruit.

Royal Bafokeng Holdings is involved in two oil and gas projects in Saldanha Bay that could outlay more than R4 billion. In August 2017, Phase 1 of the Sunrise Energy liquid petroleum gas import facility terminal, costing R1 billion, was officially launched. According to Sunrise Energy’s CEO, Pieter Coetzee, the next two phases will cost R200 million each, while a road-to-rail facility would be around R50 million. Royal Bafokeng’s CEO, Albertinah Kekana, says that Sunrise Energy’s LPG import and storage terminal is the largest in Africa. Royal Bafokeng’s second Saldanha project is a R2.6 billion oil tanking venture, already under construction and due for completion by 2019. Albertinah comments: ‘When completed, it will be the only dedicated oil blending and storage facility in Africa.’ Wesgro recently announced that in 2015, the oil and gas sector of the Western Cape economy sustained 7 120 direct jobs, and 6 120 indirect jobs in the province, and added R1.5 billion to the provincial economy in 2015. MEC for Economic Opportunities, Alan Winde, notes that Saldanha Bay is at the heart of this success and is currently servicing 82% of the South African market – its proximity to the Angolan and other oil fields being a factor in its favour. Mozambique’s oil fields provide further potential. Laura Peinke, executive: business development and Saldanha Bay Special Development Zone adds: ‘A recent report by Wood Mackenzie reveals that more than 15 major upstream projects reached final investment decision stage during 2017, one of which is the Coral FLNG project by ENI in Mozambique Niall Kramer, chief executive director of the South African Oil and Gas Alliance (SAOGA) comments that they meet with at least two international investors each month, while Alan Winde confirms that SAOGA and the Saldanha Bay Industrial Development Zone (IDZ) host more than four interested delegations a quarter. ‘Most recently, a French delegation of maritime companies met with local companies to explore partnership opportunities and areas of growth in projects such as port infrastructure and specialist fabrication,’ he adds.


Saldanha has long attracted a variety of businesses, with the oil and gas players the latest to take advantage of being in a port larger than those of Durban, Cape Town, Richard’s Bay and Port Elizabeth combined. Leading compressor and generator hire company, Rand-Air recently opened a branch in the IDZ, and with Saldanha Bay the only dedicated iron ore export facility in South Africa, the Sishen/Kolomela-Saldanha iron ore export channel sees trains pulling 342 wagons of iron ore arriving every nine hours. The ore is loaded onto ships waiting at the ore quay or stockpiled at ArcelorMittal. Wesgro estimates that the Saldanha Bay IDZ has the potential to contribute 86% to the gross geographic product (GGP) of the Western Cape, creating around 12 000 new jobs. In 2016, standing committee chairperson on Econ Development, Tourism & Agriculture, Beverley Schäfer, said, ‘The development of the SB IDZ forecasts R53.4bn cumulative contribution to the WC GGP by the end of 2020, with an approximate R8.2bn in cumulative taxes back to the national fiscus.’ The impact on the area is already being felt, with property prices and rental demand soaring. According to Lew Geffen Sotheby’s International Realty, house sales between 2013 and 2016 showed an increase of nearly 300% (291.92%) in Saldanha alone. And positive effects are expected to be experienced in neighbouring towns, for example the popular holiday town of Langebaan, 30km from Saldanha. Says Dries Venter, Langebaan’s Ward Councilor: ‘The development of the IDZ in Saldanha will have a direct impact on Langebaan by stimulating housing demand and positively impacting on the tourism and leisure sectors.

Increases in possibly higher guesthouse occupancies and support for restaurants and retail will balance out economic activity all year. Businesses will no longer be reliant on the festive season, Easter and school holidays.


This will have a positive multiplier effect on job creation and the growth of Langebaan, which will hopefully attract further services to support the growing population.’ Langebaan is well equipped to serve the expected boom, with facilities such as the 18-Hole Gary Player Design’s Black Knight golf course and a host of other facilities offered at the Langebaan Country Estate. ‘The IDZ in Saldanha has already impacted businesses in Langebaan – we’ve seen a definite increase in accommodation, conferencing and leisure interest from businesses there, and are enjoying introducing our new neighbours to our beautiful corner of the West Coast,’ says Kate Richardson, Langebaan Country Estate marketing manager. ‘It’s not surprising really, we have a great offering and are just half an hour from Saldanha. Once the IDZ is at full capacity, the spin offs for Langebaan will provide even more business and job opportunities for the whole area. It’s a very exciting time.’


Langebaan Country Estate, located in the heart of the West Coast, is a 450-hectare eco-estate that offers an exceptional living experience at all levels. The Estate offers a harmonious balance of sport, leisure and conferencing facilities, set against the spectacular West Coast scenery. Whether you’re planning to play a round of golf, toast a celebration, or just need some rest and relaxation, you’ll find it all within the Langebaan Country Estate. For more information, visit www.LCE.co.za.


Issue 7 - March to August 2018

Issue 7 - March to August 2018

This article was featured on page 70-71 of SABI Magazine Issue 7 - March to August 2018 .

Share this

10th Annual Business Process Management take of 21 Sept 18
Power Week Africa Conference 2018 take off 15 Sept 18

Subscribe to our Digital Magazine (free)