(3 minutes read)
· South Africa’s fuel imports are likely to go up since its refining capacity was affected by Covid-19 pandemic. The country imports nearly a third of its fuel requirements from overseas
· Five of South Africa’s six refining facilities are facing glitches. PetroSA’s 45,000 barrel-a-day plant may run out of natural gas feedstock next month. Glencore’s Cape Town refinery has been shut since February
· South Africa imported 135,000 barrels a day of clean fuels last year, and shipments are expected to rise 16 percent in 2020
South Africa’s fuel imports are likely to go up since its refining capacity was affected by Covid-19 pandemic. The country imports nearly a third of its fuel requirements from overseas.
Five of South Africa’s six refining facilities are facing glitches. PetroSA’s 45,000 barrel-a-day plant may run out of natural gas feedstock next month. Glencore’s Cape Town refinery has been shut since February. Together, they contribute a fifth of the nation’s processing capacity offline. Refining capacities in Petroliam Nasional Bhd, Sasol and Royal Dutch Shell are also being affected by various reasons including repairs.
The challenges being faced by the refining sector can have a toll on employment. The country is now facing a record unemployment rate of 30 percent. With margin for refining taking a beating, refiners are not keen to use the capacities. Also, a pending clean-fuels policy is likely to increase the cost of refining. South Africa imported 135,000 barrels a day of clean fuels last year, and shipments are expected to rise 16 percent in 2020.
The challenge is not unique to South Africa. Refineries around the world have been hit hard by the Covid-19 crisis. Many refining facilities are shut across the world including in the developed world.
