Billionaire-backed petrol station taking over South Africa
Glencore’s energy company, Astron Energy, has become a major player in South Africa’s fuel sector, with a growing network of petrol stations and one of the country’s largest oil refineries.
Owned by Swiss commodities giant Glencore, Astron has invested billions since entering the local market and has expanded its presence to compete with major fuel brands like BP and TotalEnergies.
Glencore entered the South African fuel market in 2017 when it bought American company Chevron’s Southern African assets for $1 billion.
Since then, it has spent heavily on infrastructure upgrades, particularly on Astron’s refinery in Cape Town, which now produces up to 100,000 barrels of refined fuel products per day.
These include petrol, diesel, jet fuel, and liquefied gas, supplying both the local market and exports.
The Cape Town refinery, which restarted in 2023, is now running at full capacity. It is considered a key asset in Glencore’s portfolio.
Glencore CEO Gary Nagle said earlier this year that the site is “cash-generative” and performing well.
Astron Energy CEO Thabiet Booley added that the refinery is important for fuel supply in the region and supports thousands of direct and indirect jobs.
The refinery, which is the third-largest in the country, is estimated to contribute R95 billion to South Africa’s economy.
Astron also supports small businesses through development programmes and has initiatives aimed at job creation and youth skills development.
While most of Astron’s revenue comes from the refinery, its retail operations are expanding rapidly. Since 2022, the company has been rebranding over 800 Caltex petrol stations to Astron Energy.
As of the end of July, 500 stations had been rebranded, and the company updates about 20 locations each month.
The most recent milestone was reached at Astron Energy Oaklands in Johannesburg, the 500th station to receive the new branding.
According to the company, over 450 jobs have been created to support the rollout, and 30 small local businesses have been involved in the rebranding process through Astron’s supplier development initiative.
Backed by billionaire Ivan Glasenberg
John Bailey, Astron’s Acting General Manager for Retail, Sales and Marketing, said the rebrand is aimed at improving customer experience and giving service stations a more modern look.
Retailer Fayyaz Moosa at the Oaklands station said the new branding brings a more professional appearance and reflects their goal of delivering better service.
Astron’s history in South Africa goes back more than a century. It began operating in 1911 as the Texaco Company and launched Caltex in 1936 as a joint venture between Chevron and Texaco. Its refinery in Milnerton was first opened in 1966.
The company’s recent expansion is backed by Glencore, which, although based in Switzerland, has deep ties to South Africa.
Glencore’s previous CEO, Ivan Glasenberg, and current CEO, Gary Nagle, were both born and educated in Johannesburg.
Glasenberg, who grew up in Illovo and studied at the University of the Witwatersrand, turned Glencore into one of the world’s biggest commodity traders. Nagle, also a Wits-trained accountant, took over in 2021.
Both leaders have maintained a strong connection to South Africa. Glasenberg, now worth an estimated $8.8 billion (R156 billion), still visits family in the country.
Nagle has defended South Africa in the face of criticism over infrastructure and power issues, pointing to what he sees as manageable problems and positive signs of improvement.
“If you look around the world, we have seen changes in royalties across the board, except for South Africa. They have not touched royalties and taxes,” Nagle told the Financial Times.
“Yes, it has issues with infrastructure and power, but the industry can work together to deal with that.”
He also noted progress at Transnet, the state-owned rail company, suggesting that a move towards public-private partnerships could improve reliability and efficiency.
Under Glencore’s ownership, Astron Energy is positioning itself as a bigger player in South Africa’s fuel industry.
With 500 of its service stations already rebranded and a large-scale refinery operating at full capacity, the company is steadily growing its footprint.
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