• Inside Labour

    Away with empty rhetoric and slogans - labour needs to focus on real issues, says Terry Bell.

  • Wrap-up: Davos insights

    Alec Hogg speaks about the top three issues at this year's World Economic Forum.

  • Netflix and SA video

    Much of Netflix's potential impact on SA has already been made, says Arthur Goldstuck.

Loading...
See More

SA to build R2bn oil-blending terminal

Sep 05 2013 17:12 AFP

(http:www.shutterstock.com)

Related Articles

APM Terminals seeks ports in Africa, Russia

Coastal town enraged over new plant

PetroSA plant restart may ease shortages

 

Johannesburg - South Africa will start building a giant coastal oil terminal next year which its investors said on Thursday will be the largest on the continent.

"We are aiming to start construction by quarter two in 2014," said Gideon Loudon, general manager of Oiltanking Grindrod Calulo, one of the project's partner companies.

The commercial crude oil storage and blending terminal will cost around $194m (R1.98bn) and is destined for Saldanha Bay, outside of Cape Town.

It should be up and running by the end of 2016 or beginning of 2017, Loudon told AFP.

The terminal will have holding capacity for 13.2 million barrels - the equivalent of twelve tankers.

"I don't think there is a crude blending terminal this size and of this nature in Africa at this stage," said Loudon.

His company, a subsidiary of world number two hydrocarbon storer Marquard & Bhals of Germany, will operate the facility in a joint venture with South African firm Mining, Oil and Gas Services (MOGS).

"Port of Saldanha is an excellent location for a crude oil hub as it is close to strategic tanker routes from key oil producing regions to major oil-consuming markets," the firms said in a statement.

"It is ideally suited for the blending of West African and South American crude oils."

The economy is heavily dependent on imports, over a quarter of which once came from Iran until US sanctions.

The Middle East, particularly Saudi Arabia, is still a significant supplier, while Nigeria and Angola last year supplied 41% of the country's crude needs.

The government has also made bilateral deals to increase its access to oil as well as storage and refining capacity for export to its neighbours.

National oil company PetroSA and China's Sinopec share a project to build an oil refinery in the Coega industrial zone near Port Elizabeth, due to come on line in 2018.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

petrosa  |  sinopec  |  coega  |  oil

NEXT ON FIN24X

 

Latest Articles

Fun and inexpensive things to do with the kids Read More...
8 simple ways to earn extra money Read More...
6 motivational tips to help you save this year Read More...
Invest for Income Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
33 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...