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Utilities Natural Gas South Africa

The report covers in detail the market supply demand dynamics, supplier landscape, pricing analysis and procurement best practices across the industries for South Africa Natural Gas

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    Utilities Natural Gas South Africa Suppliers


    Utilities Natural Gas South Africa Supplier

    Find the right-fit utilities natural gas south africa supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    Air Products and Chemicals Inc.
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

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    Up to 3 months

    1 9
    2
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    56

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    53
    Social
    55
    Governance
    65
    6 Domains Performance (/100)
    Business behaviour
    62
    Human rights
    58
    Community Environment
    46
    Corporate governance
    66
    Human resources
    51
    Security Scorecard
    89

    Threat indicators
    A
    91
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    B
    87
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    75
    Application Security
    Detecting common website application vulnerbilities
    B
    88
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    100
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    airproducts.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    5
    Human Rights Issues
    0
    Production Supply Chain Issues
    1
    Environmental Non Compliance Flags
    6
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    0
    Fraud Issues
    0
    Labor Health Safety Flags
    0
    Regulatory Issues
    0
    Workforce Disputes
    0
    Sanctions
    0
    esg energy transition
    48
    Discrimination Workforce Rights Issues
    0
    esg controversies critical severity
    No

    Utilities Natural Gas South Africa market report transcript


    Regional Market Outlook on  Natural Gas 

    • South Africa`s domestic natural gas production is at 2.65 billion cubic metres in 2016 (41 percent of domestic supply) from its offshore infrastructure by PetroSA. The entire domestic production is supplied to PetroSA`s GTL (Gas-to-oil) refinery in Mossel Bay
    • The domestic demand of natural gas in South Africa is solely met by imports from Mozambique via the 860 km pipeline operated by Sasol Gas
    • Recently, SASOL invested $2.4 million to construct a gas processing unit in Mozambique, and the project is expected to be completed by 2019
    • With a view to diversify primary fuel consumption from coal (that accounted for 68 percent in 2015) and tackle the power shortage situation, natural gas demand is expected to increase by 2.8 percent CAGR (for 2014–18)

     utilities-natural-gas-south-africa-global-market-size

    Consumption Profile

    • Around 75 percent of the natural gas consumed in South Africa is attributed to transformation by Sasol (that transforms the natural gas to synthetic gas) and PetroSA (which produces the liquids from natural gas at its GTL plant)
    • The second biggest consumer of natural gas in South Africa is the electricity sector (where natural gas contributes to ~2 percent of the total electricity in South Africa)
    • In 2017, South Africa produced about 40Bcf of dry natural gas and consumption was at 158 Bcf. The difference of 118 Bcf was imported from Mozambique pipeline . South Africa has a very limited natural gas reserves but potentially large shale gas resources when explored will lead to surplus region

    Natural Gas Proved Reserves

    • South Africa`s proven natural gas reserves stood at 27 billion cubic feet in 2015 and majority of the reserves are attributed (55 percent) to the explorations and discovery in Ibhubesi gas field (Orange Basin). Sunbird Energy is expected to supply natural gas to ESKOM from 2018 at 0.3 billion cubic meter/year for 15 years
    • According to EIA estimates, South Africa holds 11.04 Trillion cubic meters of technically recoverable shale gas resources in the Karoo desert basin.
    • However, due to various technical, environmental restrictions coupled with lack of demand and market maturity, achieving the shale gas potential (Global rank - 8th) is quite challenging and hence has received any impetus so far
    • Since supply is the biggest concern for South Africa natural gas market, the supplier power is high.
    • Also, due to low number of suppliers in the domestic market, the bargaining power of suppliers is high.
    • However, the regulated price structure in the market, weakens the supplier`s bargaining power.
    • Since, the South Africa natural gas market is dominated by one supplier –Sasol, which also meets 80% of industrial demand, the intensity of rivalry is low.
    • Also, due to regulatory challenges, in the form of fixed service areas, the market competition is low.
    • Due to the complete domination of Sasol in the domestic natural gas supply market, the buyer`s bargaining power is low.
    • Also as the suppliers market are geographically assigned by the regulator, choice of suppliers is low.
    • Due to the low available supply and weak infrastructure, buyers further find it further challenging to switch to natural gas.
    • Due to a lack of market based mechanism for wholesale gas pricing, the maximum natural gas price south africa is calculated by the regulator (when suppliers apply for a price increase) and it is based upon the price of coal, diesel, electricity, heavy fuel oil & Liquified petroleum gas.
    • Transmission charges are also based on the transmission zones. The consumer located near Johannesburg will have transmission charges as compared to a consumer in Durban.
    • The components of the distribution charges are network access charge, network demand chargeand urban low voltage subsidy charge.

    South Africa Natural Gas Price Analysis

    Historical Price 

    • The average prices of natural gas (average of all customer classes) in South Africa has increased by nearly 8.7 percent from ZAR 144.36/GJ in 2017 to ZAR 156.88/GJ in 2018. This was mainly due to the increase in the electricity price component

    Price Forecast

    • For 2019, prices are expected to increase as per the SASOL natural gas maximum price equation.The price increase will be due to increase in the commodity price such as diesel and expected increase in electricity prices by minimum 4 percent compared to prices in 2018

    Industry Wide Procurement Practices 

    Natural gas is predominantly sold under bilateral contracts with 3 popular models - take or pay, firm and interruptible contracts. Industrial users usually prefer Take or Pay contracts as it involves higher cost savings and lower risk (in terms of supply security).

    Take or Pay (TOP) Contracts

    • Under this agreement buyer agrees to take a minimum quantity of gas at a price that is decided in the agreement. If the buyer does not take the minimum quantity, then the buyer is liable to pay for that minimum quantity at the contract price or specific price agreed in case of default
    • This contract provides buyer with a right to receive a make up quantity in later years, only when the buyer has taken TOP quantity for that year. Industrial users usually opt for TOP (minimum take of 90-95 percent) contracts because higher the minimum percentage lesser the contract price

    Firm Gas Contracts

    • Under this contract either party may interrupt its performance without liability only to the extent that such performance is caused by an event of Force Majeure
    • Party invoking Force Majeure is held responsible for any imbalance charges related to the interruption after the nomination is made to transporter and until the change in deliveries and receipts is confirmed by transporter
    • In this contract, concerned parties anticipate no interruptions and are legally obligated to either receive or deliver the amount of gas contracted. These contracts are specially very beneficial in high demand season, when there are chances of supply disruption

    Interruptible Gas Contracts

    • Under this contract either party may interrupt its performance at any time for any reason, whether or not caused by an event of Force Majeure, with no liability, except the interrupting party will be held responsible for any imbalance charges as decided in the agreement
    • Under this agreement, two parties involved anticipate and permit interruption on short notice, generally in high demand seasons. Usually interruptible contract price is lower than firm gas contracts

    Why Should You Buy This Report 

    • Information about the South Africa natural gas market value chain analysis, market trends, key regulations and policies affecting the market etc.
    • Porter’s five force analysis of the South Africa natural gas market.
    • Cost break up, pricing mechanism, price drivers and trends and forecast of natural gas price south africa.
    • Best procurement practices, contract models, etc.