South Africa has officially launched a newly integrated state-owned oil and gas enterprise, aimed at revitalizing the country’s energy sector.
Dubbed the South African National Petroleum Company (SANPC). This new entity consolidates three former subsidiaries of the Central Energy Fund — PetroSA, iGas, and the Strategic Fuel Fund into a single organization.
The initiative, announced by Minerals and Energy Minister Gwede Mantashe, is designed to strengthen South Africa’s energy security, promote economic growth, and establish a sustainable and competitive national energy player. The SANPC will focus on key areas such as improving domestic fuel supply, investing in infrastructure, and supporting the country’s transition in the evolving global energy landscape.
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Tasks
Godfrey Moagi, serving as Chief Executive Officer, emphasized that the company’s structure was informed by international case studies like Brazil’s Petrobras but adjusted for South African conditions and challenges. Sipho Mkhize, a former PetroSA executive, now chairs the board.
One of SANPC’s primary responsibilities will be to help the country manage a looming natural gas supply crisis. South Africa currently relies heavily on gas imports from Mozambique, which are expected to decline significantly by 2027. SANPC will explore new supply routes, including liquefied natural gas (LNG) imports and enhanced use of local gas assets.
Minister Mantashe noted that, historically, state agencies like iGas played limited roles in gas development. The SANPC is expected to change that by becoming actively involved in both infrastructure development and energy production.
Another major focus will be the restoration of refining capacity. South Africa’s local refining industry has been in decline, with many plants closing or shifting to storage use. As a result, fuel imports have risen by over 11% annually since 2009. SANPC will lead efforts to revive the Mossel Bay gas-to-liquids (GTL) plant and rebuild the former SAPREF refinery in Durban, projects considered essential to reducing reliance on imported fuels.
The company is also tasked with maximizing returns from South Africa’s existing petroleum assets, particularly offshore and onshore blocks. Despite global momentum toward renewable energy, government leaders stress that fossil fuels remain critical for meeting industrial and economic needs in the near future.
By consolidating resources and eliminating overlap, SANPC aims to operate more efficiently and commercially, while still aligning with national goals of inclusive economic growth, job creation, and long-term energy stability.