Glencore, led by South Africa’s Gary Nagle, commits $329 million to cleaner fuels

Key Points

• Glencore’s Astron Energy is investing R6 billion ($329 million) to upgrade its Cape Town refinery, aligning South Africa’s fuel with Euro 5 standards by 2027.
• With refinery closures reducing capacity to 358,000 barrels daily, South Africa now imports 75% of its liquid fuel needs—over 19 billion liters in 2023.
• Glencore’s revenue rose 6% to $230.94B in 2024, but the company is reevaluating its London listing amid valuation concerns.

Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, is investing up to R6 billion ($329 million) through its unit Astron Energy to help South Africa meet cleaner fuel standards ahead of a 2027 deadline.

The funds will go toward installing new equipment at Astron Energy’s 100,000-barrel-per-day crude oil refinery near Cape Town. The project includes a Gasoline Hydrotreating Process designed to bring petrol production in line with Euro 5 standards—part of South Africa’s long-delayed Clean Fuels II regulations, senior Astron officials said.

Meeting the clean fuel deadline

South Africa originally planned to reduce sulphur levels in petrol and diesel to 10 parts per million (ppm) under the Clean Fuels II framework, with a compliance deadline set for 2017. However, delays pushed the requirement to July 1, 2027. “We will be supplying compliant fuels at the date asked of us,” said Astron Energy CEO Thabiet Booley.

Astron Energy is one of only two operational crude oil refineries in South Africa, a sector that has struggled in recent years. The country’s domestic refining capacity has dropped to around 358,000 barrels per day after the closure and mothballing of two major refineries in Durban. As a result, South Africa now imports about 75 percent of its liquid fuel needs—over 19 billion liters in 2023, according to the Fuel Industry Association of South Africa (FIASA).

Alongside its refinery upgrade, Astron is expanding its retail network, recently unveiling its 400th rebranded service station in Gqeberha. This milestone marks the halfway point in its plan to transform more than 800 sites across the country.

Glencore’s global push

Founded in the 1970s as a trading firm, Glencore has grown into one of the world’s largest mining companies by revenue. It operates in 35 countries, covering 60 commodities, and employs 150,000 people. Under CEO Gary Nagle, who holds a 0.016 percent stake in the company valued at $7.56 million, Glencore continues to expand its presence across energy and mining markets.

The company’s revenue rose 6 percent in 2024 to $230.94 billion, supported by strong performance in its metals and marketing divisions. However, coal revenue saw only a slight increase of 0.93 percent, putting pressure on overall profitability. Despite this, Glencore is pushing ahead with its investments in energy transition projects, including cleaner fuels, to align with shifting global demand.

At the same time, Glencore is reassessing its listing on the London Stock Exchange (LSE), joining a growing number of firms reconsidering their UK presence due to valuation concerns. Meanwhile, a recent London court ruling awarded Glencore $120 million and its trading rival Vitol $260 million in compensation from Nigeria LNG over undelivered liquefied natural gas (LNG) cargoes—highlighting Glencore’s legal and business strategy in the energy sector.