Page 4 - AfrOil Week 04 2023

AfrOil COMMENTARY AfrOil

Luiperd and Brulpadda have been listed as possible feedstock sources for the Mossel Bay GTL plant (Image: Africa Oil Corp.)

PetroSA seeks GTL partners

amid downstream despair

State-run firm takes new approach to reviving moribund Mossel Bay GTL plant

THE South African state oil firm PetroSA has Efforts to re-commission the 36,000 barrel
kicked off efforts to support the country’s strug- per day (bpd) plant have come amid a record
WHAT: gling downstream sector, seeking partners to increase in imported fuels in South Africa, fol-
PetroSA is looking for reinvigorate the moribund Mossel Bay gas-to- lowing the shutdown – either temporary or per-
partners to support liquids (GTL) plant. manent – of several domestic refineries.
efforts to return its On January 18, the company issued a request PetroSA said that the GTL plant could pro-
Mossel Bay GTL unit to for proposals (RFP) “for development, refur- cess both gas and condensate, and that any
full capacity.
bishment, modification, upgrade, funding restart would require the operator to carry out
WHY: and/or operation” of the facility, to reinstate full shutdown and recertification. The company
full production “in the earliest possible time at
mentioned that options were not limited to gas,
South Africa’s fuel im-
ports are at record highs least costs.” Operations were halted in 2020 due noting that it could be converted to process
and are showing no sign to feedstock challenges resulting from a sharp crude and condensate, or even conversion into
of slowing down. decline in local gas production. PetroSA’s RFP a biorefinery.
notes that it is developing a “long-term feed-
WHAT NEXT: stock solution,” which is expected allow full Finance
Revamping Mossel Bay production from the asset by 2027/2028. The RFP noted PetroSA’s preference for a part-
will support PetroSA but Referring to the South African state-owned ner that would fully fund the rehabilitation
is unlikely to change the Central Energy Fund (CEF), PetroSA noted its work, offering financial incentives based on the
challenging landscape for shareholder’s “support of a partnership agree- success of the project. Such incentives would
fuel availability in South ment to accelerate production reinstatement take the form of sharing production revenue
Africa. and optimise the operation in the short to and performance-based contracting or equity
medium term.” participation. Mossel Bay GTL plant (Photo: PetroSA)

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