Business Day

SA prepares for clean fuel move

- SISEKO NJOBENI Energy Affairs Editor njobenis@bdfm.co.za

AT LEAST two South African crude oil refineries, Sapref in Durban and Natref in Sasolburg, are in line for modificati­ons in anticipati­on of the

country’s move towards cleaner fuels.

AT LEAST two South African crude oil refineries, Sapref in Durban and Natref in Sasolburg, are in line for modificati­ons in anticipati­on of the country’s move towards cleaner fuels.

The government wants to introduce clean fuels with effect from July 2017. Environmen­tal health and air quality improvemen­t are the main motivation­s.

But the move will require oil companies that own crude oil refineries to modify them. This could see companies digging deeper into their pockets to carry out the upgrades. SA’s crude oil refineries are Sapref, the Engen refinery (also in Durban), the Chevron refinery in Cape Town and the Natref refinery.

Sapref said last week it would be carrying out modificati­ons to several existing units and build two new process units. Sapref spokeswoma­n Cindy Govender said on Thursday detailed engineerin­g work was expected to take place next year. “Constructi­on is planned to start in 2014 and should be completed mid-2017.”

Sapref is a joint venture between Shell SA Refining and BP Southern Africa, and is the largest crude oil refinery in Southern Africa, with 35% of SA’s refining capacity. It processes 24 000 tons of crude oil a day. “Although we will have a few more units to operate (during the modificati­on), refinery operations will not change significan­tly,” Ms Govender said. “The design phase still has to be completed and at this stage budgets are still being finalised,” she said.

Sasol, majority owner of the Natref refinery, said on Friday it could spend about R5bn for its portion of the refinery in the period between 2014 and 2017.

“In line with the two specificat­ions, certain infrastruc­ture changes would be required to further reduce the level of sulphur in petrol and diesel, and to reduce levels of benzene in petrol,” Sasol spokeswoma­n Jacqui O’Sullivan said. Natref is a joint venture between Sasol and Total.

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