Liquefied petroleum gas (LPG) trading and shipping company Petredec has launched a subsidiary in South Africa called Petrefuel, after recently acquiring Empangeni-based fuels wholesaler Jubane Petroleum and fuels distributor Oilco last year.
Petrefuel will operate alongside Petregaz, which is South Africa’s largest wholesaler and distributor of LPG, and in which Petredec is a majority shareholder.
The acquisition of Jubane marked Petredec’s second acquisition in the fuels sector in the last 12 months. Jubane has linked up with the former Oilco wholesale business, which joined the Petredec group in December 2019.
The addition of Jubane strengthens Petredec’s market presence, particularly as both Jubane and Oilco operate in the coastal region of KwaZulu-Natal, albeit with complementary customer bases.
The combined Petrefuel business will distribute diesel, petroleum, paraffin and lubricants to customers operating in the transport, agricultural, retail, industrial and other commercial sectors across the province.
Jubane Petroleum was established in 1999 and employs about 55 people, who will now operate under the Petrefuel banner as part of an expanded entity.
Petredec seeks to grow Petrefuel’s span beyond KwaZulu-Natal.
"We welcome the Jubane team to the Petredec family and look forward to the successful integration of the business within our new Petrefuel division.
"We intend to build upon the considerable success that Jubane has enjoyed to date and grow our footprint as part of a larger fuels distribution network, including LPG,” says Petredec group CEO Giles Fearn.
Since Petredec's establishment 40 years ago it has grown into a globally respected trading, shipping and land-based wholesale and terminal operating company.
While continuing to move more than ten-million tonnes of LPG a year through a fleet of more than 60 owned and chartered LPG vessels, Petredec is developing a fuels wholesale and logistics division in Southern Africa alongside an LPG import and terminals business, with projects in Mauritius, South Africa and India.