For now, gasoline shortages are not anticipated – even just after SA missing its past refinery

  • South Africa has been remaining without having a one working oil refinery soon after Sasol shut Natref amid delayed oil deliveries.
  • Sasol claims it doesn’t hope provide shortages at fuel stations, for now. 
  • Gas imports will be ramped up, and Sasol’s coal-to-gas plant is at whole capacity.
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At this stage, petrol or diesel shortages are not expected at gas stations, soon after South Africa has been remaining with out a solitary running oil refinery.

All of South Africa’s refineries are now offline, following Sasol shut Natref in Sasolburg next delays in the arrival of crude oil shipments at the Durban port. The company declared a power majeure, and said it will not be equipped to source of petroleum items. It refines oil to generate petrol and diesel.

Sasol spokesperson told Fin24 that no provide shortages are predicted at gasoline stations, which include its very own, at this phase.

Sasol does not want to give facts about the origin of the oil that has been delayed, but verified that a shipment last but not least arrived on Saturday. The corporation states it is “pro-energetic” in getting new sources of oil. It expects that Natref will be jogging at full capability by conclude-July.

The delay in crude oil supplies to Sasol comes at an unexpected time. Whilst there has been a supply squeeze in the latest months, need for oil has started to weaken in reaction to red-scorching price ranges. Expanding fears about a worldwide recession are also weighing on demand. Previous 7 days, oil price ranges dropped underneath $95 a barrel for the first time given that the invasion of Ukraine.

Last refinery standing

Natref was the previous functioning crude oil refinery in South Africa, and next its loss, the state should now import 80% of its gas. Sasol’s artificial coal-to-gasoline operation is providing the relaxation. That operation is jogging at comprehensive ability, Sasol’s spokesperson documented.  

South Africa will have to ramp up imports of diesel and petrol to make up for the loss of Natref.

Earlier this year, the country’s largest crude oil refinery, Sapref, was shut by BP and Shell. New thoroughly clean gasoline restrictions need the companies to spend billions in an improve of the refinery. Alternatively, they place Sapref up for sale. Govt expressed desire to purchase it, but no offer has been struck.

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Sasol and its companion in Natref, TotalEnergies, also indicated that Natref might come to be unsustainable owing to the rules, which will call for a R45 billion update to the refinery.

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Explosions have shut the Cape Town refinery of Astron Electrical power (previously Caltex), as properly as Engen’s Durban refinery in recent decades. PetroSA’s Mossel Bay refinery is also shut as it can not safe enough feedstock from offshore fuel fields.