A joint venture between Glencore and logistics firm Tristar Group has reached a deal to acquire a 37% stake in South Africa’s largest oil storage facility.
The deal comes as oil traders prepare for a possible global oversupply, which could drive demand for large scale storage.
Aquarius Energy, the joint venture company, confirmed on Wednesday that it finalised the acquisition of Oiltanking’s share in MOGS Saldanha OTMS.
The underground terminal, located in the Port of Saldanha, can hold up to 10 million barrels of oil.
It is the biggest facility of its kind on the African continent and has historically served as a hub for storing surplus oil during supply gluts.
In such conditions, traders typically store cheap oil and sell it later when prices rise, using the facility’s capacity to maximise returns.
Aquarius Energy first announced the transaction in 2023, but final agreements were only concluded this week.
Capacity for surplus
The deal strengthens Glencore’s presence in the energy logistics space, especially at a time when global oil markets are shifting.
The oil storage hub at Saldanha is strategically positioned along international shipping routes and has been used during past market imbalances, including the 2020 global oil surplus.
Aquarius Energy said the new shareholding structure will enhance its ability to support customers with long term storage needs.
The company explained that the asset gives it leverage to respond to rising storage demand expected in periods of increased supply.
Apart from this, the acquisition marks a notable move by Glencore, whose energy business typically operates fewer physical assets compared to its large metals and mining operations.
The company’s core business in copper, cobalt and other critical minerals often includes full control of mining and logistics.
In contrast, its energy division has historically relied more on trading agreements than infrastructure ownership.
Glencore boosts forecast for trading business
In a separate update, Glencore said on Wednesday it had revised its long term annual profit forecast for its global trading operations.
The company increased its projected range to between $2.3 billion and $3.5 billion, up from its previous estimate of $2.2 billion to $3.2 billion.
It said the new forecast reflects stronger performance across both energy and metals trading segments.
Aquarius Energy, which now includes the South African oil terminal in its portfolio, is expected to contribute to this growth, particularly if global crude oil supply outpaces demand in the near term.
