Aurora Downstream Energy — Operations Plan
The operating model, capital-light terminal access, the infrastructure build phasing, supply chain and procurement, distribution and logistics, technology systems and health, safety and environment.
Section 8 · Business Plan
Operations Plan
The operating model, capital-light terminal access, the infrastructure build phasing, supply chain and procurement, distribution and logistics, technology systems and health, safety and environment.
8.1 Operating model overview
Aurora Energy’s operations span four integrated functions: supply and
procurement; storage and processing (bottling and blending);
distribution and last-mile delivery; and the enabling layer of
technology, safety and compliance. The capital programme builds owned
infrastructure where it creates durable advantage — inland depots,
bottling capacity, fleet and the cylinder pool — while securing scarce,
capital-intensive import-terminal capacity through throughput agreements
rather than greenfield construction.
8.2 Capital-light terminal access
A defining feature of the plan is that Aurora Energy does not build a
greenfield import terminal in Phase 1. Instead, it secures throughput
and storage capacity at existing coastal import terminals (for example
in the Richards Bay and Saldanha/Cape Town corridors) under commercial
throughput agreements. This is a proven entry route used by established
distributors: it removes the multi-year construction lead-time and
several hundred million rand of terminal capex, accelerates
time-to-revenue, and preserves balance-sheet flexibility — while still
giving Aurora the import-linked supply security that is the decisive
competitive resource. Owned secondary storage at inland depots provides
the buffer and trading optionality close to demand centres.
The capital-light terminal-access strategy is the single most
important driver of Aurora’s capital efficiency and, by extension, its
returns. Securing these throughput agreements on acceptable commercial
terms is therefore a critical-path item and a key diligence question for
investors. The plan treats terminal-access agreements as a Phase-1
milestone (Section 10) and a principal risk (Section 12).
8.3 Infrastructure build phasing
The total capital programme of R750m is phased to match the volume
ramp and to avoid over-building ahead of demand. The bulk of investment
falls in the first two years to establish the core platform, with
lighter maintenance and expansion capex thereafter.
Table 12. Capital programme by category
(R’m)
| Category | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 | Total |
|---|---|---|---|---|---|---|
| Storage terminals & depots | 170 | 70 | 50 | 25 | 18 | 333 |
| Bottling & blending plant | 100 | 30 | 20 | 12 | 10 | 172 |
| Fleet & cylinder pool | 70 | 35 | 28 | 15 | 14 | 162 |
| IT, safety & fit-out | 40 | 15 | 12 | 8 | 8 | 83 |
| Total capex | 380 | 150 | 110 | 60 | 50 | 750 |
8.4 Supply chain & procurement
Aurora Energy secures product through a combination of term supply
agreements with international LPG and fuel traders and opportunistic
spot purchasing, importing through secured terminal capacity.
Procurement discipline — timing purchases against price and currency
movements, and positioning inventory in owned storage — is a core margin
lever. The Company maintains strategic inventory buffers to protect
customer supply during international logistics disruptions, a recurring
vulnerability in the South African market that Aurora turns into a
service advantage.
8.5 Distribution & logistics
Distribution combines an owned fleet of bulk tankers and cylinder
trucks with contracted third-party haulage for peak and long-haul
requirements. Routing, telematics and a managed cylinder pool optimise
asset utilisation and delivery reliability. The fleet and depot network
are sized to the volume ramp and positioned to reach the target
provinces efficiently, with last-mile capability extending into township
and rural markets that incumbents serve poorly.
8.6 Technology systems
An enterprise resource planning (ERP) platform integrates
procurement, inventory, sales, credit control and finance. Fleet
telematics, tank telemetry and a cylinder-tracking system underpin
delivery reliability, safety and working-capital control. These systems
also generate the operating data — volumes, margins, delivery
performance, safety metrics — that management and lenders use to monitor
covenant compliance and performance against plan.
8.7 Health, safety & environment
LPG and fuel handling is safety-critical and tightly regulated.
Aurora Energy will operate to SANS and Occupational Health and Safety
Act standards across storage, filling, transport and installation,
supported by a dedicated HSE function reporting to a board-level HSE
committee. Safety performance, environmental compliance and
incident-free operations are treated as licence-to-operate imperatives
and as brand differentiators in a market where safety failures carry
severe human, regulatory and reputational consequences. ESG commitments
and targets are detailed in Section 13.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Aurora Downstream Energy (Pty) Ltd.