Almost Half Of South Africa’s Oil Refining Capacity To Stay Shut Until 2022
Almost Half Of South Africa’s Oil Refining Capacity To Stay Shut Until 2022. According to energy consultant Citac, South African plants owned by Glencore and Petroliam Nasional Bhd that make up 43% of the nation’s oil refining capacity are expected to stay shut until 2022.
The closures will force South Africa to be heavily reliant on fuel imports. All four of South Africa’s oil refineries – with a total capacity of more than 500 000 barrels a day have had accidents or are under review.
Astron Energy, a unit of Glencore has yet to restart the 100 000 barrel a day Cape Town refinery after a deadly explosion and fire in July. Petronas unit Egen Holdings’ Durban plant also stopped production due to a fire in December.
Egen is considering different options for its 120 000 barrel a day plant after it was reported that it is expected to be closed in 2023 and may be converted into a fuel storage terminal. Elitsa Georgieva, an analyst at Citac said, “If the plan is to close in two years, it would not make economic sense to invest into bringing it back up.”
Shell is also reviewing its shareholding in the Sapref refinery, a joint venture of Royal Dutch Shell and BP.
