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SA refineries below 80% capacity

Cape Town - On average, all South African refineries are producing below 80% of their design or "nameplate" capacity, Energy Minister Dipuo Peters said on Tuesday.

Replying to a written question in the National Assembly, Peters said she has directed that an audit of South African refineries be conducted to ascertain the real status of these refineries as far as it concerned their production capacities and capabilities.

The audit is under way and will be concluded in this calendar year.

She was responding to Independent Democrats MP Lance Greyling, who wanted to know whether all crude oil refineries are functioning at full capacity.

Greyling also asked whether the department has identified the need for infrastructure expansion programmes within the oil refinery industry, and whether Peters intends entering into public-private partnerships for any refinery infrastructure expansion programmes.

Peters said the energy department is developing a 20-year liquid fuels infrastructure roadmap to ascertain and quantify the need for infrastructure expansion programmes within the oil refinery industry, among other things.

The National Oil Company, PetroSA, is involved in business engagements with private companies in this regard.

PetroSA's Mthombo refinery project - in the Coega industrial development zone - is also involved in investigating potential public-private partnerships to improve the country's refining capacity, she said.

In another written question, Greyling asked whether Peters has identified any measures to deal with the recurring petrol shortages within the inland provinces.

Peters said the supply of fuel to the inland region is highly constrained and the department is concerned about the recent fuel shortages experienced in the South African market, particularly in the inland region.

Being aware of the country's precarious liquid fuels supply situation, the department has supported the SA Petroleum Industry Association in obtaining an exemption from the Competition Commission to meet the department to manage the supply situation.

She said the department frequently meets supply managers of the various oil companies and holds more operational logistics planning team talks with oil companies' supply specialists on supply chain problems and solutions.

Oil companies also submit planned refinery shutdown schedules and contingency plans to the department for monitoring to minimise any negative impact on supply.

A draft strategic stocks policy, which would specify the quantities of strategic (national emergency) crude oil and refined product stocks to be maintained, is being finalised in the department.

Once approved, regulations will be developed for the holding of emergency stocks for national purposes.

Qualitatively, it has been determined that petroleum products (including petrol) storage infrastructure is needed in the inland region.

To determine the extent of the need and identify the best options, the full capacity and capability of the current and future supply chain and logistics infrastructure has to be assessed and quantified.

The department's 20-year liquid fuels infrastructure roadmap will also ascertain and quantify the need, Peters said. 

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