South Africa has officially launched the South African National Petroleum Company (SANPC), a new state-owned energy enterprise formed through the consolidation of three entities—PetroSA, iGas, and the Strategic Fuel Fund.
All were previously part of the Central Energy Fund. The move is aimed at creating a financially sustainable national oil and gas leader.
SANPC, led by CEO Godfrey Moagi and chaired by former PetroSA CEO Sipho Mkhize, began operations in May 2025.
The new company seeks to strengthen state participation in oil and gas projects by leveraging the combined assets, expertise, and financial capacity of its predecessors.
At the launch event on May 23 in Johannesburg, Minister of Mineral Resources and Energy Gwede Mantashe highlighted that SANPC’s formation is part of broader efforts to stabilize and restructure state-owned entities.
The goal is to enhance efficiency, support economic growth, create jobs, lower the cost of living, and reduce inequality.
Drawing on international models such as Brazil’s Petrobras, Moagi emphasized that SANPC will adapt global best practices to South Africa’s specific energy needs and strategic priorities.
Mantashe outlined the company’s core responsibilities, including securing reliable energy supplies, developing infrastructure, adopting advanced technologies, and forming key partnerships.
He acknowledged the challenges ahead, including navigating a volatile and polarized global energy landscape. However, he stressed that domestic industrial expansion and population growth would sustain fossil fuel demand in the near term.
Mantashe stated that SANPC will lead the planning, coordination, and oversight of South Africa’s petroleum sector.
A key focus will be unlocking upstream resources—especially natural gas—even as environmental legal challenges persist.
With gas imports from Mozambique expected to decline by 2027, the country must secure alternative supplies, likely through liquefied natural gas (LNG) imports.
Mantashe criticized iGas for its past inactivity in managing national gas infrastructure and expressed confidence that SANPC would take a more proactive and effective role.
The company is also tasked with maximizing the value of both offshore and onshore energy assets and reviving domestic refining capacity.
Since 2009, South Africa’s reliance on imported refined fuels has grown by 11% annually due to declining local refinery output.
To reverse this trend, SANPC aims to restart the Mossel Bay gas-to-liquids (GTL) plant and rebuild the South African Petroleum Refinery (SAPREF) in Durban—critical steps toward strengthening the country’s energy security.
Mantashe noted that local refineries once met 80% of national fuel demand in 2010, but by 2022 that share had fallen to less than 35%, largely due to the withdrawal of international oil companies and the conversion of refineries into storage facilities.
He emphasized that SANPC’s revitalization efforts align with South Africa’s broader strategy to attract investment and achieve long-term energy stability.
A board of directors was appointed in April 2023 to ensure sound governance from the outset, and financial sustainability remains a key focus for the new company.
