Virtually half of SA’s oil refining seen shut till 2022


South African crops owned by Glencore Plc and Petroliam Nasional Bhd that make up 43% of the nation’s oil-refining capability are anticipated to remain shut till at the least 2022, in keeping with vitality marketing consultant Citac.

Astron Vitality, a unit of Glencore, has but to restart the 100 000 barrel-a-day Cape City refinery after a lethal explosion and hearth in July. Petronas unit Engen’s Durban plant additionally stopped manufacturing in December after a hearth.

Moneyweb InsiderINSIDERGOLD

Subscribe for full entry to all our share and unit belief knowledge instruments, our award-winning articles, and assist high quality journalism within the course of.

The closures will drive South Africa to rely closely on gasoline imports. All 4 of South Africa’s oil refineries – with a complete capability of greater than 500 000 barrels a day – have had accidents or are beneath evaluation, with the business already hit exhausting by the Covid pandemic. A pending nationwide clean-fuels coverage can be more likely to improve prices to improve equipment.

Engen stated choices are being thought of for its 120 000 barrel-a-day plant after a neighborhood information web site reported it’s anticipated to close in 2023 and could also be transformed right into a fuel-storage terminal. If the plan is to shut in two years, “it might not make financial sense to take a position into bringing it again up,” stated Elitsa Georgieva, an analyst at Citac.

Astron and Engen didn’t instantly reply to emailed requests for remark.

The Sapref refinery, a three way partnership of Royal Dutch Shell and BP, additionally faces uncertainty as Shell evaluations its shareholding within the enterprise. Sasol has additionally been deciding on plans for its Natref refinery since conducting a evaluation of the plant.

© 2021 Bloomberg L.P.