SA petroleum imports to triple, domestic refineries close
South Africa’s monthly petroleum product imports are expected to triple by next year from pre-pandemic levels as domestic refineries close, according to energy consultant Citac.
“South Africa already relies on imports to meet up to 60 per cent of its fuel demand, and any increase in shipments will require improvements to existing storage facilities, ports and pipelines,” Citac said in a report.
Standards
On top of that, a clean-fuels policy set to take effect next year raisesthelikelihoodtha t refineries unable to meet the new standards will have to shut permanently, po- tentially leaving just over a third
South African stocks have felt investors’ aversion to risk more sharply than their emerging-market peers, sliding toward the worst weekly slump since October 2020.
Johannesburg’s benchmark FTSE/JSE Africa All Share Index was down 2.6 per cent as of 1:32 pm local time on Friday, deepening this week’s selloff beyond 6 per cent. That’s a steeper retreat than MSCI’s index of developing country stocks, which is down about
4 per cent.
Battered
Worries over Chinese demand have battered luxury retailer Richemont and miners like Anglo American, while the global rout in tech stocks has pulled local giant Naspers Ltd. lower.
Gold and platinum producers have been among the biggest drags on the market this week, as inflation concerns prompt investors to turn away from precious metals.
More than 90 per cent of to the policy.
African governments and industry are working on a continent-wide standard to cap the amount of sulfur in gasoline and diesel that could require nearly US$16 billion in infrastructure upgrades. South Africa is on a faster track to implement the higher-spec rules, but its refinery capacity has already been hit by a range of obstacles such as unplanned closures and crimped supplies.
Pandemic
The shutdown of the Engen oil refinery, a lack of feedstock for State-owned PetroSA’s gas-toliquids plant and an explosion at Glencore Plc’s Cape Town refinery, have all affected capacity already curtailed by the pandemic.
Sapref, is the country’s biggest plant, owned by Shell and BP, stopped operations as it awaits a sale.
Meanwhile, Sasol and TotalEnergies have yet to conclude options on the future of their Natref refinery, Sasol CEO Fleetwood Grobler said earlier this year.
Supply
Product pipelines from the port of Durban where fuel is imported will need to be modified to handle additional supply, according to Citac. Additional storage for gasoil and jet fuel may also be required.
If plant closures continue, a dedicated shipping route will be needed to accommodate adequate imports, the South African Petroleum Industry Association said in a reply to questions. Smaller vessels could also bring fuel to other ports, which would increase costs.