LUBRICANTS

South Africa has a sophisticated lubricants industry which encompasses base oil refining, lubricant blending and the marketing of finished lubricants into a wide range of applications and markets.

The South African lubricants industry is one of the largest on the continent, playing an important role in the South African oil industry. It is also supported by the strong chemicals sector in South Africa, which is able to offer local availability of bulk additives.

The lubricants industry has a long history in which the needs of the automotive market as well as industrial sectors have been served. In particular, the demands of the powerful mining industry, the agricultural sector and the manufacturing industries have ensured healthy, ongoing growth of the lubricants sector. The South African lubricants industry is highly competitive and is not currently subject to most of the government or trading controls and restraints which pertain to fuels such as gasoline and diesel. Lubricants are marketed by all the fuel marketing companies and a range of smaller companies.

With one of the strongest lubricant markets in Africa, South Africa supplies most of the demand in neighbouring countries.

The South African lubricants market demand is approximately two million barrels per year which accounts for a little under a fifth of the African continent’s consumption and about one percent of the world consumption. The market covers the full spectrum of applications for lubricants and greases including industrial (49%), marine (7%), aviation (1%), cars (22%) and trucks / buses (21%). Also used are various process oils such as those which find application in printing ink and tyre manufacture. The range of products includes mineral based lubricants, and various combinations of synthetic lubricants although these comprise a small proportion of the overall products demand.

The marketers of lubricants include the local affiliates of multinational oil majors, South African based oil companies, the Synfuels producers, local affiliates of international companies, specialist niche marketers and jobbers. These companies market lubricants through their service station forecourts, supermarkets such as Pick n’ Pay, commercial channels and by direct customer sales.

Sasol has more recently entered the market, deriving part of its technology through its shareholding in the Europe based Carl Bechem. Smaller market share oil players include specialist CPI Engineering. Several companies are involved in providing tribological support services to the lubricants industry and condition monitoring and predictive maintenance services are increasingly being utilised.

While this was originally the preserve of the oil majors, a number of companies have moved into this sector and are providing back-up services such as in-service monitoring of lubricant quality. These companies will analyse lubricants drawn from operating machinery to establish whether it still meets performance requirements. The analyses also establish whether any untoward equipment wear may be taking place. This allows potential equipment stoppages and breakdowns in key items of equipment to be avoided through advance warning. Another service area encompasses the performance analysis of lubricant products. Various engine and rig tests to evaluate product performance and quality against specifications are offered by organisations including Engineering Research, Stellenbosch University, the Council for Scientific and Industrial Research (CSIR) and the South African Bureau of Standards (SABS).

In South Africa, lubricants are marketed and distributed in a range of bulk and packaged forms. These include road tankers, bulk Iso-Tainers, Mini-Tainers, maxipacs, 200 litre drums and various small pack sizes. Distribution is done either direct to the end user or through company depot and distribution networks. Major oil companies and national road haulage companies play a large role in the bulk transport of lubricants and in the distribution of packed products.