Massive LP Gas shortage to hit southern Africa

A massive shortage of gas is set to hit South Africa after after Vita Gas, which imports of Southern Africa’s LP gas pulled out of its agreement with the Sunrise Energy Terminal in Saldanha bay.

Vita Gas said in a statement:

Vita Gas deeply regrets that it has not been possible to find a mutually acceptable way forward….Vita Gas appreciates that for local distributors, its decision is likely to lead to some short term supply issues…

Vita Gas is the only Gas supplier in the Western Cape since 2021.

This has resulted in the company being fined by the competition commission for its exclusive agreement with Sunrise Energy.

In February, Vitol, the main shareholder in Vita Gas, completed a 74% share purchase in Engen from Malaysian company, Petronas. The merger created a giant energy company with over 4000 service stations across 27 African countries.

South African investment vehicle, Phembani, which is owned by former MTN CEO, Phuthuma Nhleko, owns 21% in Engen SA.