SOUTH AFRICA’S FUEL SECURITY UNDER THREAT AS NATREF REFINERY FACES FINANCIAL CRISIS
South Africa’s energy independence hangs in the balance as the nation’s only inland crude oil refinery confronts mounting financial pressures that could force closure and push fuel import dependence to a dangerous 85%. The NATREF refinery in Sasolburg, operated by the National Petroleum Refiners of South Africa, has become a critical focal point in the country’s struggle with increasing reliance on imported petroleum products.
Sipho Mkhize, chairman of the newly formed South African National Petroleum Corporation (SANPC), outlined the severe financial strain facing the strategically important facility during Friday’s SANPC launch. The refinery’s operations depend entirely on crude oil transported via the Single Buoy Mooring system in the Indian Ocean off Durban, but the shutdown of Durban’s local refineries has devastated SBM utilization by 80%, causing operational costs to skyrocket.
The financial crisis threatens to transform South Africa’s energy landscape dramatically. Currently importing approximately 75% of its fuel needs, the country could see this figure surge to 85% if NATREF ceases operations, significantly increasing supply vulnerability and security risks. Mkhize warned that continued financial pressures could force the refinery closure, creating an overwhelming burden on South Africa’s petroleum supply chain.
In response to the crisis, SANPC has announced plans to convert the existing Single Buoy Mooring into a Multi-Buoy Mooring system, enhancing flexibility in liquid bulk handling within the Durban Precinct. This strategic infrastructure upgrade aims to alleviate the throughput bottlenecks currently strangling the NATREF refinery’s operations. The SANPC was formed through the merger of three Central Energy Fund subsidiaries: iGas, the Strategic Fuel Fund, and PetroSA.
Source: iol.co.za