‘Refining capacity is industrial capacity’, says CEF chair as imports reach 61%
Imported fuel now meets about 61% of South Africa’s demand, up from 22% in 2019, and Central Energy Fund chairperson Ayanda Noah has called for investment in the SANPC Refinery Development Programme, a proposed 400,000 barrel-a-day refinery estimated at $7.15bn that would create about 12,500 construction jobs.
Addressing an industry engagement on the state of the energy industry, Ayanda Noah, chairperson of the Central Energy Fund (CEF) Group, set out how far South Africa has come to rely on imported fuel. Imports now meet about 61% of domestic demand, against 22% in 2019, as the country’s refining capacity has declined.
“Energy security is economic security, and refining capacity is industrial capacity,” she said. “Strategic capacity takes years to build, but it can disappear in months.”
Noah pointed to the South African National Petroleum Company’s Refinery Development Programme, a proposed 400,000 barrel-a-day refinery estimated at about $7.15bn, which she said would create about 12,500 construction jobs and 2,850 permanent roles. She also described the revival of PetroSA’s operations at Mossel Bay as an opening for petrochemicals, manufacturing, logistics and gas-to-power, provided the feedstock and infrastructure can be secured.
She asked the Industrial Development Corporation and the Development Bank of Southern Africa to take a larger part in assessing strategic energy infrastructure. She cited the backing governments and investors in Brazil, India, China and Russia have given to similar projects.
“This is not an ideological debate,” Noah said, warning that dependence on imports leaves South Africa exposed to supply disruptions and exchange rate volatility.
Images: Business Day
