CEF punts three-phase redevelopment plan for shut KZN refinery
The Central Energy Fund (CEF) has again indicated that it is moving ahead with planning for a phased redevelopment of the mothballed Sapref refinery, in Durban South, which the State-owned company purchased in 2024 for R1 from previous owners BP and Shell.
The crude-oil refinery was closed after being damaged during the 2022 KwaZulu-Natal floods, two years after the nearby Engen Refinery had also been shut.
These closures, together with the mothballing of the Mossgas refinery, have resulted in a steep fall in South Africa’s domestic refining capacity and a rise in fuel imports, which now account for more than 60% of finished-product supply.
The refinery site is currently held by the South African National Petroleum Company (SANPC), a CEF subsidiary, and is referred to as the SANPC refinery site.
CEF CEO Dr Tshepo Mokoka told community stakeholders in Durban South on September 9 that a three-phase redevelopment plan was envisaged.
During the first phase, CEF would seek to utilise existing tanks and transfer infrastructure to support the importation of finished products to create a “pathway towards commercial sustainability”.
The next phase, he said, would focus on rebuilding refining capacity with a targeted throughput of some 400 000 bbl/d, which would represent a major increase on Sapref’s original nameplate of 180 000 bbl/d.
The third phase objective was to achieve refining throughput of between 400 000 bbl/d and 650 000 bbl/d, he added.
No timeframes or funding plans were outlined, but Mokoka stressed the strategic importance of domestic refining, while also emphasising the need for any redevelopment to be “commercially disciplined, technically credible, and financially sustainable”.
“The immediate objective is to generate revenue, improve utilisation of existing infrastructure and avoid unnecessary losses while the broader redevelopment case progresses,” Mokoka said.
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