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South Africa Moves to Rebuild Refining Capacity
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South Africa Moves to Rebuild Refining Capacity

By Moneyweb·Edited by Editor TO·

South Africa’s Central Energy Fund (CEF) has unveiled plans to revive domestic crude-oil refining and reduce the country’s growing dependence on imported fuel. The strategy centers on rebuilding the Sapref refinery near Durban, which was shut after floods damaged the facility in 2022. Under CEF’s plans, the refinery will initially process 400,000 barrels per day, with capacity then rising to 650,000 barrels subject to investment and regulatory approvals. The move comes as imports now supply roughly 61% of South Africa’s fuel needs, up sharply from 22% in 2019. The country currently operates just two crude refineries, Sasol’s Natref and Astron Energy’s Cape Town plant, which have a combined capacity of roughly 208,000 barrels per day. Adding Sapref’s planned capacity would strengthen local refining capabilities and reduce imports. In the meantime, CEF plans to use existing storage and transfer infrastructure to support imports.