With most of SA refineries now offline, companies want 'financial support' for upgrades | Fin24

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South Africa’s shrinking refinery capacity could be impaired further without financial support for upgrades needed to meet new clean-fuel standards, according to an industry lobby group. | News24_Business

Of six refineries operating nationwide in 2019, only two are currently producing fuel, reflecting an 80% output drop due to unplanned shutdowns, Avhapfani Tshifularo, executive director of the South African Petroleum Industry Association, said in a statement. Cleaner fuel regulations that go into effect in 2027 will require planning and funding to meet the specifications.

“Pending decisions by refiners on the operations of their facilities, will have a direct impact on employment and potentially result in a larger dependency on imports,” he said. “Without a financial support mechanism, it would be difficult to justify the refineries upgrades.” The 108 000-barrel-a-day Natref plant, owned by Sasol and TotalEnergies, was forced in July to shut following late oil shipments. That , for a range of reasons, all of South Africa’s oil refineries weren’t producing, and highlighted the country’s growing dependence on fuel imports.

Temporary relief could come as Astron Energy’s 100,000-barrel-a-day Cape Town refinery, which is majority owned by Glencore Plc, resumes production after rebuilding a section of the plant damaged by an explosion in 2020. Still, a greater reliance on imports also presents difficulties, Tshifularo said. “Our current port infrastructure is not suitable for increased imports of liquid fuel for the long term.” In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month.

 

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_Business Hell, don’t these people feel ashamed to beg like this?

_Business Kubo New Dawn, balume .. kubo 😂😂

_Business SA is doomed! The writing is on the wall, yet we fail to acknowledge this

_Business We've just got an $11bn handout for green power. You think they're going to throw money at refineries? Cadres be scrambling for green tenders.

_Business South African feul tests show that 95 octane is actually lower that 87 octane damaging our car's engines prematurely and causes higher carbon foot print.

_Business How exciting.

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