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Africa’s most industrialized nation relied on imports for 61% of its petroleum product supply in 2023 compared with 22% four years ago due to the shutting of multiple refineries, Transnet said in a presentation recently.
South Africa’s rapid switch to become a net importer of fuel creates supply risks requiring infrastructure to store and transport the fuel, according to state-owned logistics firm Transnet.
Africa’s most industrialized nation relied on imports for 61% of its petroleum product supply in 2023 compared with 22% four years ago due to the shutting of multiple refineries, Transnet said in a presentation recently.
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Growing dependence on imports leaves South Africa’s fuel pipeline system susceptible to interruptions that “may result in temporary fuel shortages,” according to Transnet. The company plans to invest in the port of Durban to add tanks, a fuel import terminal, and a jet fuel pipeline.
South Africa’s refining capacity has shrunk due to a combination of industrial accidents and the approach of new low-sulfur fuel standards that require greater investment in aging plants. The 2021 shutdown of the Engen oil refinery in South Africa, and a lack of feedstock for state-owned PetroSA’s gas-to-liquids plant have also curtailed the country’s fuel output.
