Photo by: Bloomberg
Local welding and gas solutions provider Afrox on Friday reported that it had signed additional deals within the liquefied petroleum gas (LPG) sector totalling R1.1-billion.
The first contract will see the company provide LPG to major Lesotho distributor Gordon Enterprises over a ten-year period, valued at R1-billion. This involves a new LPG filling site in the Maseru Industrial Development Zone, providing a significant increase in storage to meet increased demand in the area.
Afrox also secured a five-year agreement to supply LPG to a distribution partner in Mthatha, in the Eastern Cape. This contract is worth R100-million and will enable volume availability of LPG to rise by about 100% in the area.
Afrox MD Schalk Venter says the contracts demonstrate the company’s ability to grow existing business with strategic partners, enabled by its supply-on-demand contract with global LPG supplier Petredec.
“Since May, we have imported 30% of our LPG needs through Petredec and the Bidvest Tanker Terminal in Richards Bay and this security of supply will be an engine for growth in the LPG market for Afrox.”