2 days ago
Sapref unveils ambitious plans after R1 sale
THE Central Energy Fund (CEF), which bought South Africa's biggest former oil refinery, Sapref, for just R1 last year, said it plans to expand the refinery's capacity as part of a broader energy transition strategy. CEF is a government-owned company under the Department of Mineral Resources.
Also read: eThekwini Municipality hopes to see Sapref revived
Sapref, located in Prospecton, was previously owned by BP South Africa and Shell South Africa. At its peak before the 2022 floods, it produced 180 000 barrels of fuel per day, about 35% of the country's refining capacity. After it stopped production and shifted to importing fuel, the facility has handled about 70% of South Africa's petroleum fuel supply.
Speaking at a recent conference in Cape Town, CEF's acting group CEO, Dr Tshepo Mokoka, said the need to increase capacity comes amid the country's rising demand for fuel. He said CEF aims to increase capacity to between 400 000 and 600 000 barrels per day.
'We want to address demand by processing the hydrocarbons that we have in South Africa as well as those in neighbouring countries,' said Mokoka.
Hydrocarbons are organic compounds found in fossil fuels like crude oil, natural gas, and coal. Hydrocarbons are known for their combustibility, making them a primary energy source.
Mokoka added that the CEF is striking a balance between renewable energy and hydrocarbons, which aligns government's broader strategy to implement a just energy transition from fossil to renewable energy.
A University of South Africa professor, however, has questioned the R1 sale of Sapref to the government, saying it could have been designed for Sapref to evade its social and environmental liabilities. Llewellyn Leonard, of the university's Environmental Science Department, said decommissioning the refinery would have meant that Sapref was liable for the costs of restoring the site to its original state.
'Selling the refinery to the South African government, instead of decommissioning it, suggests that Sapref will not be held accountable for historical environmental liabilities and social injustices,' said Leonard.
Over the years, Sapref was at loggerheads with nearby communities over air pollution and oil pipeline leaks. The acquisition of Sapref by CEF was approved by the Competition Commission in September 2024.
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