South Africa’s biggest fuel producer has declared force majeure on oil supplies due to delays in crude deliveries to the Natref refinery it owns with TotalEnergies, leaving only a fraction of the country’s fuel capacity still operating, according to Bloomberg.
Natref, a 108,000 bpd plant, was forced to shut down after delayed oil shipments, the company said in a statement. “Sasol Oil will not be able to fully meet its commitments to supply all petroleum products from July 2022,” the company said.
The shutdown means South Africa’s entire fleet of oil refineries is out of service after a number of other facilities suspended production over the past two years. As a result, the country’s monthly oil imports are set to triple by next year from pre-pandemic levels, energy consultant Citac said in a May report.
Only Sasol’s synthetic fuel businesses, which use coal as feedstock, remain fully operational, accounting for about a fifth of national capacity.
A fire at the Engen oil refinery, which will be converted into a terminal, and an explosion at Glencore Plc’s Cape Town refinery quickly reduced capacity.
Sapref, the country’s largest plant, which is owned by Shell Plc and BP Plc, shut down in anticipation of a sale and was subsequently damaged by floods. PetroSA’s state-owned gas-to-liquids unit, another synthetic operation, has run out of feedstock.
Meanwhile, a clean fuel policy set to take effect next year raises the possibility that refineries that cannot meet the new standards will be forced to shut down permanently.
For now, Natref’s shutdown is temporary. Crude cargoes are expected to start arriving soon, with the plant expected to ramp up to maximum output by the end of July, Sasol said. The partners have not yet settled on options about the future of the plant, Sasol chief executive Fleetwood Grobler said earlier this year.
The Cape Town refinery is also expected to restart in the second half of 2022.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
