The state-owned Central Energy Fund has outlined a redevelopment plan for South Africa's refining capacity, including the restoration of the SANPC refinery in Durban South, to enhance energy security, it said Wednesday.
The country's refining capacity currently supplies 39% of total demand, which is half of the 2019 level of 78% due to the closure of major refineries, according to the statement. Fuel imports have consequently risen to 61% of finished product supply, almost triple the 2019 level of 22%.
CEF's roadmap consists of three phases, beginning with the use of existing tanks and transfer infrastructure for product imports to secure supply.
The second phase will focus on the restoration of the SANPC refinery site to achieve a throughput of 400,000 barrels per day, while the third phase will aim to further increase capacity up to 650,000 b/d.
In the near-term, CEF plans to unlock value from existing infrastructure by leasing storage capacity, reinstating liquefied petroleum gas and blending facilities, and commercializing laboratory services.
"The immediate objective is to generate revenue, improve utilization of existing infrastructure and avoid unnecessary losses while the broader redevelopment case progresses," CEF said.