Recently, a major oil field was discovered in South Africa! | Earth Knowledge Bureau

Countries like Germany place particular emphasis on coal-to-liquids (CTL) technology. (Image: Vladimir Wrangel / shutterstock) ▼ This technology was originally invented by Germans, but research into it stalled as global petroleum supplies continued to grow. Ironically, the country where CTL technology achieved its greatest success turned out to be South Africa. In the 1940s, South Africa enacted the Liquid Fuels and Petroleum Act, formally designating coal liquefaction technology development as a national strategy for resolving energy shortages—and enshrining this policy in law. Soon afterward, South Africa’s implementation of apartheid policies provoked worldwide condemnation, resulting in international oil embargoes against the country—further accelerating its R&D efforts in coal liquefaction technology. Abundant coal resources form the foundation for coal liquefaction. The higher the liquefaction technology level, the greater the degree of coal mining. (Image: Melanie Lamprecht / shutterstock) ▼ In 1955, South Africa established Sasol—a dedicated entity for coal liquefaction research and production—which successfully produced its first barrel of CTL diesel and built its first CTL plant; soon thereafter, its initial petroleum products entered the market. Thus began South Africa’s era of liquid petroleum fuels. (Image: Vanessa Bentley / shutterstock) ▼ So how did Sasol do it? Technically, coal liquefaction falls into two main categories: “direct liquefaction” and “indirect liquefaction.” Direct liquefaction involves hydrogenating coal directly to produce petroleum. Sasol opted instead for “indirect liquefaction,” which imposes lower raw-material requirements and yields higher-quality output. This method adds an intermediate “gas production” step: coal is mixed with water and air, generating gases—primarily carbon monoxide and hydrogen. Process of “indirect liquefaction” ▼ Next comes the most critical step: converting these gases into gasoline and diesel. The prevailing mainstream technique today is the Fischer–Tropsch (F–T) synthesis process—the very method adopted by Sasol. Under catalytic action, carbon monoxide transforms into an active carbon compound, then reacts with hydrogen and further polymerizes into various chemical products—including gasoline and diesel. Sasol ushered in a new era of energy technology for South Africa. Moreover, following the 1970s oil crisis, Sasol constructed its second and third CTL plants—in Sasolburg and Secunda respectively—ensuring South Africa’s energy supply at the time. The South African government also provided strong administrative backing for the company, mandating that other domestic oil firms purchase large volumes of Sasol’s products and implementing direct subsidies for Sasol’s operations and product pricing. Sasol’s significance for South Africa extends far beyond that of an ordinary energy company. It is, in fact, one of the pillars underpinning the nation’s stability and development. (Image: Chris Redan / shutterstock) ▼ Today, after six decades of development, Sasol possesses the world’s most advanced CTL technology and remains the globe’s sole commercial-scale producer of coal-to-liquids fuel. Naturally, the company has greatly enhanced South Africa’s self-sufficiency in refined petroleum products: of the country’s annual 26 million tons of refined oil products, nearly one-third originates from Sasol.

Major riots! Over one hundred factories looted! Ports paralyzed! South Africa’s largest refinery announces suspension of production!

According to news reports, after former South African President Jacob Zuma’s arrest and imprisonment, his supporters launched protest actions across provinces including KwaZulu-Natal and Gauteng. These protests rapidly escalated into large-scale riots, causing significant casualties and economic losses. 1. To date, the large-scale riots have claimed at least 117 lives! According to official updates from Ntshavheni, following the deployment of the South African National Defence Force into riot-affected areas, the situation in Gauteng Province has largely stabilized. However, instability persists in KwaZulu-Natal Province, where 39 incidents of looting, arson, and vandalism were still reported on July 15. According to South African police statistics, a total of 2,203 people have been arrested so far. Impacted by this nationwide unrest, Sapref—the largest refinery in South Africa—has shut down operations due to social turmoil, announcing severe difficulties in supplying all petroleum products! The refinery declared force majeure, citing “domestic riots disrupting transportation routes in KwaZulu-Natal Province (Zuma’s home province), with key raw material suppliers reporting damaged transport vehicles and serious safety concerns for staff—leading them to suspend deliveries.” Public records indicate that Sapref is jointly operated by Shell SA Refining and BP Southern Africa. With a daily capacity of 175,200 barrels, it accounts for 35% of South Africa’s total refining capacity. The facility had only recently resumed operations weeks ago, following a one-month maintenance shutdown. Another international consultancy reports that Sasol—the world’s only company currently engaged in large-scale coal liquefaction for synthetic fuel production—has likewise declared force majeure. In 2020, Sasol ranked 1,264th on the Forbes Global 2000 list. Today, Sasol has expanded its coal-to-liquids and chemical businesses across dozens of countries in Africa, Asia, Europe, and North America. In China, it operates the Ningxia–Sasol Coal Indirect Liquefaction Project, maintains chemical plants in Nanjing, Lianyungang, and Hangzhou, and has representative offices in Shanghai, Guangzhou, and Hong Kong. Additionally, reports indicate that on July 13, a refinery in Durban, South Africa, also suspended operations for security reasons. According to the plant’s Head of Safety and Production, this decision was made solely on safety grounds; operations will resume once conditions improve. Notably, many South African refineries had already been struggling to survive under the dual pressures of the pandemic and national clean-fuel policies. Energy consulting firms project that up to 50% of South Africa’s existing refineries may shut down by 2022—including Glencore and PetroSA, which together account for 43% of the country’s refining capacity. The Executive Director of the South African Fuels Association publicly stated that as more and more local refineries close, South Africa’s dependence on imported fuels will intensify. Some analysts suggest that rising South African demand for petroleum products on international markets could further push up global oil prices. 2. South Africa’s largest container port has ground to a halt—completely paralyzed! Given the current crisis, most enterprises have either closed entirely or are operating with minimal staffing, severely disrupting supply chains.

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