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South Africa’s Oil Refining Capacity Below Risk

Oil company Chevron South Africa believes that the future of its refinery in Desk View, Cape City is under risk because of a license granted to Burgan Cape Terminals by the Nationwide Power Regulator (Nersa).

Fixed tube petroleum products insmetics now plate heat exchangerSpeaking to CapeTalk’s Kieno Kammies, Chairperson of Chevron South Africa Nobuzwe Mbuyisa says they oppose the licence due to the terminal’s potential to import clean gas products.

Burgan Cape Terminal was awarded a license to build a gas storage facility within the Port of Cape Town’s Japanese Mole.

Whereas broadly reported as such, Chevron says that doesn’t oppose incremental storage amenities, but would problem strikes that undermine native refining and go against South Africa’s authorities policy.

She identified that Chevron’s potential to develop production of low-suplhur “cleaner fuels” would require investment – but (Governement) regulated pricing is slowing their history improve plans… totalling an estimated R40 Billion for the business.

If that import product just isn’t managed, is just not controlled, then we’re working a threat as SA of inserting a threat to the viability of refineries. We are holding Government to it’s coverage.

Mbuyisa says this scenario makes local refineries uncompetitive in opposition to petroleum products insmetics now worldwide products – like those that could possibly be launched by way of Burgan Cape Temrinals – threatening thirteen 500 jobs at Chevron and other refining jobs nationally.

In accordance with Wikipedia, South petroleum products insmetics now Africa has six refineries:
– Cape City Refinery operated by Chevron and producing 110 000 barrels per day (17,000 m3/d)
– Engen Refinery (Enref) operated by Petronas and producing 122 000 barrels per day (19,400 m3/d)
– Sapref Refinery operated jointly by Shell & BP producing 125 000 barrels per day (19,900 m3/d)
– Sasol Refinery producing 125 000 barrels per day (19,900 m3/d)
– Natref Refinery (National Petroleum Refiners of SA) operated by Whole and producing 108 500 barrels per day(17,250 m3/d)
– Mossel Bay GTL (Gas To Liquid) Refinery operated by PetroSA and producing 36 000 barrels per day (5,seven hundred m3/d)

Muziwandile Mseleku, CEO of Burgan Cape Terminals likened the Chevron SA threat of closure to behaviour of multi-nationals pre-democracy.

We imagine that Chevron desires to protect its position in Cape City.
We’re hoping that Division of Power will work on a mechanism that will ensure the danger is mitigated. We see a future where Burgan Cape Terminals and the refinery co-exist.

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