Is SAPREF still operating?

The South African Petroleum Refineries (SAPREF), located in Durban and once the largest refinery in the country, is currently not operational. Its shutdown in March 2022 followed severe damage caused by floods and other long-standing operational challenges. SAPREF, previously a joint venture between Shell and BP, provided approximately 35% of South Africa’s fuel refining capacity. Since ceasing operations, it has been in a dormant state, with fuel supplies being met through imports.

Recent Developments

In 2024, the Central Energy Fund (CEF), a South African state-owned entity, acquired the SAPREF refinery. This acquisition aligns with the government’s strategy to bolster energy security amidst declining local refining capacity. The CEF aims to assess whether restarting operations is feasible, given the substantial repair costs from the 2022 flood damage and the aging infrastructure of the facility.

Key Challenges

Restarting SAPREF poses significant challenges:

  1. Cost of Repairs: Repairing flood damage and modernizing the refinery would require substantial investment.
  2. Environmental Concerns: The refinery has a history of pollution, including pipeline leaks and emissions affecting local communities. Addressing these issues is critical for future operations.
  3. Shifting Energy Landscape: The global energy transition towards renewables and reduced fossil fuel reliance raises questions about the long-term viability of traditional oil refineries.

The Path Ahead

For now, SAPREF remains non-operational, and its future depends on comprehensive assessments by the CEF. A revival could enhance energy independence, but it comes with financial, environmental, and strategic risks. The refinery’s role will likely depend on South Africa’s evolving energy policies and economic priorities.

Stay tuned for updates as the situation develops and government plans for SAPREF become clearer.

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