African Oxygen (Afrox) on Friday announced that it had signed a 10-year agreement worth R1 billion to supply liquefied petroleum gas (LPG) to a major distributor in Lesotho, the Gordons Enterprise.
The South African gases and welding products company said the contract would secure a new LPG filling site in the Maseru industrial development zone, thus providing a significant increase in storage, to supply the increased demand in the area.
Afrox also signed a five-year agreement to supply LPG to a distributor partner in Mthatha, in the Eastern Cape.
The company said that particular contract was worth R100 million and would enable volume availability of LPG to rise by about 100% in the area.
Afrox managing director Schalk Venter said the contracts demonstrated the company’s ability to grow existing business with strategic partners.
“Enabling this is our supply-on-demand contract with global LPG supplier Petredec. Since May 2016 we have imported 30% of our LPG needs via Petredec and BTT in Richards Bay, and this security of supply will be an engine for growth in the LPG market for Afrox,” Venter said.
On Thursday, Afrox announced a 10-year, R45 million LPG deal with one of South Africa’s largest poultry producers, which supplies stores such as Woolworths and Nandos.
– African News Agency (ANA)