Page 15 - AfrOil Week 27

AfrOil POLICY AfrOil

Meanwhile, disruptions in global oil and gas institutions and energy companies continues to
markets caused by price wars and the COVID- grow stronger. Today’s high-level ministerial
19 restrictions could negatively affect countries meeting is a clear example of those deepening
reliant on oil and gas for a considerable share relationships,” said IEA Executive Director Fatih
of their government income. At particular risk Birol.
are green energy projects that aim to increase “Africa needs structural energy investments
access-to-power rates across the continent. in order to develop its full potential. Africa needs
Roundtable chair Mouhamadou Makthar be supported to participate actively in the energy
Cissé, Senegal’s Minister of Petroleum and transition by respecting its global environmental
Energy, said Africa needed inclusive, just and commitments,” said Cissé.
sustainable energy transitions in order to ensure Members of the roundtable also heard that
sufficient, affordable and reliable energy for all. Africa needed a secure, affordable and sustain-
Members of the roundtable heard that Africa able power sector that would not only aid eco-
faces the risk that clean energy could be a luxury nomic recovery but also enhance resiliency to
beyond the reach of many Africans, particu- other challenges over time. Key areas of invest-
larly in rural and slum urban areas.“Continued ment include the national and mini-grids sec-
failure to close the energy access gap will make tors, as well as off-grid.
clean energy a luxury many Africans cannot Meanwhile, oil and gas exporters, who have
afford,” said South African Mineral Resources been severely affected by the crisis, should seize
and Energy Minister Samson Gwede Mantashe. the opportunity to diversify their economy away
“With its young and dynamic population, from fossil fuels.
Africa has an increasingly important role in the Finally, governments should foster enhanced
world’s energy future. The region has long been regional and international co-operation to help
a key part of the IEA’s work, but I am delighted build robust, affordable, sustainable and resilient
that our engagement with African governments, energy systems across the continent. ™

PROJECTS & COMPANIES
Fire breaks out at Cape Town refinery

SOUTH AFRICA SOUTH African fuel supplier Astron Energy is deal with Chevron closed last year.
investigating a fire that broke out at its 100,000 The fire is the latest in a series of setbacks
barrel per day (bpd) oil refinery in Cape Town at the plant. Annual maintenance work was
early on July 2, leaving two dead and seven pushed back this year because of coronavirus
injured. (COVID-19), and Astron became embroiled in
According to Astron, the fire occurred just March in a pay dispute with workers employed
after 04:00 local time and resulted in production by its contractors.
being shut down. South Africa’s largest refinery is Engen Dur-
“We will conduct a full investigation of the ban, operated by a joint venture between BP
incident,” CEO Jonathan Molapo said in a state- and Royal Dutch Shell. The pair closed it down
ment, noting that there was no immediate threat in late March and resumed operations in mid-
to fuel supplies or surrounding communities. May. All of the country’s other refineries, save
The shutdown comes at South Africa reopens for Astron’s, are now running. ™
its economy after lockdown. The country closed
more than half of its refining capacity in March
and April following a collapse in fuel demand
caused by travel restrictions. But consumption
quickly recovered in late May as the measures
were eased, leading to authorities rationing fuel.
Astron’s Milnerton plant is the third-big-
gest of South Africa’s six refineries, account-
ing for about 14% of national capacity. It was
in the process of restarting after undergoing
extensive maintenance when the fire occurred.
It has finished an upgrade programme worth
ZAR400mn ($23mn) that enables it to produce
very low-sulphur fuel for ships docking in the
port of Cape Town.
Astron is majority-owned by Swiss commod-
ities trading giant Glencore. Glencore acquired
the company and its refinery as part of a $1bn The Milnerton refinery has a capacity of 100,000 bpd (Photo: Pace Services)

Week 27 08•July•2020 www. NEWSBASE .com P15