Faizel Patel, Radio Islam News - 08-11-2019
South Africa’s Central Energy Fund (CEF) partnering with Saudi Aramco expects a proposed new 300,000 barrel per day crude oil refinery along South Africa’s east coast.
Citing CEF’s acting group chief executive Kholly Zono, Reuters reports the project is expected to come on-stream by 2028, making it the region’s largest refinery.
Speaking on the sidelines of an oil and gas conference in Cape Town, Zono says while work on the project is still at an early stage, indications are that it would cost in the region of $10 billion excluding the development cost of a related petrochemical complex at Richards Bay.
“We are comfortable we have a very solid business case to attract investment and funding from bankers.”
Zono says they expect the refinery to become operational by 2027/28.
“The refinery will be designed to accept other types of crude and produce fuel compliant with South Africa’s impending clean fuels regulations based on Euro V specifications."
Former Saudi Energy Minister Khalid al-Falih announced the project in January, ahead of plans by Saudi Aramco, the world’s biggest oil firm, to list its shares.
The new refinery would reduce the need for refined product imports and cement Saudi Arabia’s dominant position in South Africa’s oil sector. The Gulf kingdom already supplies around 40 percent of the crude oil consumed in South Africa, which is a net importer of petroleum products.