Cape Town — South Africa will need more than $8 billion to revive two mothballed state-owned refineries, as the government seeks to strengthen energy security and reduce its reliance on imported fuels.
The Central Energy Fund (CEF) acquired the flood-damaged 180,000-barrel-per-day Sapref refinery from BP and Shell in 2024 for a nominal 1 rand ($0.06).
CEF plans to restart Sapref’s liquefied petroleum gas import and distribution business and lease existing storage facilities to generate early revenue. The longer-term proposal would transform the refinery into a facility capable of producing between 400,000 and 650,000 barrels per day, subject to National Treasury approval.
The total investment in the Sapref refinery is estimated at approximately $7.15 billion, with a final investment decision targeted for 2027/28. Potential financing discussions reportedly include Afreximbank, among other institutions.
Mossel Bay refinery also targeted
CEF is also considering the phased restart of the Mossel Bay gas-to-liquids refinery, operated by PetroSA and now part of the South African National Petroleum Company.
The refinery has been idle since 2020 because of insufficient domestic gas feedstock.
Phase 1: Around 18,000 barrels per day, requiring an estimated 5.8 billion rand investment.
Phase 2: Expansion to 46,000 barrels per day, requiring an additional 8.5 billion rand, or about $525 million.
Source: Reuters
Reporting: Wendell Roelf
Editing: Barbara Lewis
