PetroSA has confirmed the appointment of Russia’s Gazprombank as the preferred strategic partner for the R3.7 billion deal to restart the gas-to-liquids refinery in Mossel bay.
The fuel refinery was closed in 2020 due to the depletion of offshore gas feedstocks.
Acting PetroSA CEO Sandile Ncemane says the resumption of operations at the refinery will restore security of supply of petroleum products following the closure of several refineries over the past couple of years which made South Africa reliant on imports.
Addressing the media in Sandton north of Johannesburg, Ncemane says, “PetroSA welcomes cabinet’s decision announced this [Monday] morning with regards to support PetroSA working with Gazprombank Africa to reinstate PetroSA liquids refinery capacity, as it enables PetroSA to move forward.”
“The optimum size for the PetroSA liquids capacity has to be complementary to the existing refineries in meeting the demand of the Western Cape, Northern Cape, Eastern Cape and to ensure that [it] improves return on investment,” adds Ncemane.
PetroSA media briefing:
