Page 12 - DMEA Week 29 2021

DMEA REFINING DMEA

Sapref resumes

Durban operations

AFRICA THE South African Petroleum Refineries (Sap- The company’s CEO Yusa Hassan said that
ref) joint venture between BP and Royal Dutch the decision had been taken following an “exten-
Shell began restarting operations at its Durban sive strategic evaluation”, with the fuel terminal
refinery which shut down a week ago following expected to be commissioned in Q3 2023 and
civil unrest in the country. limited refining operations carrying on in the
The 180,000 barrel per day (bpd) facility meantime.
was closed under force-majeure as looting and Hassan said: “The conclusion of the strategic
unrest spread through KwaZulu-Natal and assessment is that the Engen refinery is unsus-
beyond following the imprisonment of former tainable in the longer term. This is primarily
South African President Jacob Zuma, causing due to the challenging refining environment
supply chain disruptions. as a result of a global product supply surplus
This led to fears of fuel supply shortages, as and depressed demand, resulting in low refin-
the refinery accounts for around 35% of South ing margins, and placing the Engen refinery in
Africa’s fuel supply. Sapref’s shutdown left Sasol’s financial distress.”
160,000 bpd Secunda coal-to-liquids (CTL) He added that refitting the plant which
plant and the 107,000 bpd National Petroleum opened in 1954, making it South Africa’s old-
Refiners of SA (Natref) unit in Sasolburg as the est, to meet emissions regulations would be too
country’s only functional units. Sapref produces costly.
gasoline, diesel, marine fuel, bitumen, base oils “Furthermore, unaffordable capital costs to
and paraffin waxes. meet future CF2 [equivalent to Euro 5] regula-
On July 20, Sapref said it would restart the tions compliance continues to be a challenge for
plant the following day, with start-up likely the long-term sustainability of the refinery.”
to take 7-10 days to complete. It said: “With The refinery was shut completely following
key delivery routes open and materials supply a fire on December 4 last year and Engen has
secured, Sapref can now restart the refinery.” previously said it remained “fully committed to
Meanwhile, the government-owned ports operating the Engen refinery in a safe and relia-
operator Transnet National Ports Authority ble manner”, though it added it was “considering
reported this week that normal operations had several options”.
resumed at the ports of Durban and Richards Turnaround maintenance (TAM) was carried
Bay. out during a 45-day programme in February
In April, Engen Petroleum, a subsidiary of 2018.
Malaysia’s state-owned Petronas, announced it The plant’s product range includes automo-
would convert its 120,000 bpd refinery, also in tive, industrial, aviation and marine fuels, bitu-
Durban, into an import terminal following years men, lubricants, chemicals and solvents, and
of losses and a fire in December, following which until its closure it provided around 17% of South
it has not resumed operations. Africa’s refined products.™

P12 www. NEWSBASE .com Week 29 22•July•2021