South Africa estimates $7.15 billion investment to revive its refineries
The Central Energy Fund has unveiled a $7.15 billion program to rebuild South Africa's refining capacity. Pretoria aims to reduce its dependence on imported fuels, which now accounts for 61% of demand.
South Africa has estimated a $7.15 billion program aimed at rebuilding its public refining capacity centered around Sapref, near Durban. Presented to Parliament by the Central Energy Fund (CEF), the project targets a capacity of 400,000 barrels per day to reduce dependence on imported fuels.
This dependence has now reached 61% of national demand, up from 22% in 2019, according to figures provided by the CEF. Only two crude oil refineries remain operational in South Africa, with a combined capacity of approximately 208,000 barrels per day. Several major facilities are either shut down or have been converted into import terminals.
The program is set to begin in 2026-2027 with an initial phase of $305 million dedicated to storage, fuel blending, liquefied petroleum gas imports, and logistics. A second tranche of $45 million, planned for 2027-2028, will fund studies, permits, rail works, and the search for partners and financing.
The core of the project represents $6.8 billion. This includes $4.2 billion for processing units, $1.4 billion for site infrastructure, $800 million for maritime facilities and storage, and $400 million in reserves. Construction is expected to last 48 months following the final investment decision, with overall delivery estimated between six and seven years.
The CEF estimates that the project could support around 12,500 jobs during construction and create 2,850 permanent positions. In its full scenario, the public body anticipates up to 16,220 jobs and a contribution of 16 billion rand to the gross domestic product. However, these projections are contingent upon permits, financing, and the final investment decision.
Sapref, once the largest refinery in the country, has been shut down since 2022 following the cessation of operations by Shell and BP, and subsequent damage caused by flooding in KwaZulu-Natal. The CEF took over the facility in 2024. Its plan is to first utilize existing tanks to secure imports before increasing capacity to 400,000 barrels per day, and eventually to 650,000 barrels, subject to necessary approvals.
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