Johannesburg - African Oxygen has inked deals worth R1.1 billion, the liquid fuels provider said on Friday.
In a statement issued to shareholders, the company said it had signed two deals, one in Lesotho and one in the Eastern Cape.
Afrox has recently been through a restructuring process, which it has said will bolster its financial position.
The most valuable deal announced on Friday is a 10-year agreement to supply liquefied petroleum gas to a major distributor in Lesotho, Gordons Enterprise.
The deal will secure a new LPG filling site in the Maseru industrial development zone, which Afrox says will provide “a significant increase in storage, to supply the increased demand in the area”.
Read also: Afrox’s restructuring efforts bear fruit
Afrox has also signed a 5-year agreement to supply LPG to a distributor partner in Mthatha, in the Eastern Cape.
This deal is worth R100 million and will enable volumes of LPG available in the area to about double.
Afrox MD Schalk Venter says the “two contracts demonstrate our ability to grow existing business with strategic partners, and enabling this is our supply-on-demand contract with global LPG supplier Petredec. S
“Since May 2016, we have imported 30 percent 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.”IOL