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Big plans for new SA oil refinery

Johannesburg - PetroSA is looking for crude oil in Africa to use in a new refinery envisaged for the Eastern Cape.

Energy Minister Dipuo Peters told Sake24 last week that the state-controlled energy utility had already identified possible sources for crude oil on the continent.

Most of Africa's oil, she said, was converted into fuel in other countries and then imported into Africa, but it should be beneficiated within Africa. This was where South Africa could take the lead.

Peters said the energy department was fully behind plans for a new oil refinery, Project Mthombo, planned for Coega in the Eastern Cape.

If it had depended on the department Mthombo would have been started five years ago, she said.

Mthombo formed part of the department's strategy for fuel security for South Africa, she said, and Sake24 has learnt that the refinery will also form part of the department’s new Integrated Resource Plan (IRP2010).

But the refinery is not the only plan the department has up its sleeve. Sake24 understands that the IRP2010 also provides for a new coal-to-fuel plant and plans have been stepped up for South Africa to be able to produce fuel from gas.

The IRP2010, which is expected to be promulgated on April 1, is under consideration by Cabinet.

Peters said South Africa could no longer afford uncertainty over its energy security.

The department said it had faith in PetroSA’s ability to do its job now that a new board had been appointed by the utility.

It had been necessary to appoint a fresh, stronger board. This had been done and the plans must now go ahead, another source in the department told Sake24.

The department believes scale gas can be imported from certain neighbouring countries for conversion into fuel.

A new coal-to-fuel plant in the Waterberg also forms part of the department's plans.

This plant, Project Mafutha, is a Sasol [JSE:SOL] project, but as yet no final decision to proceed has been taken.

Peters however said that Mafutha was not off the table. A "very active" project team from Sasol and the department were working on the project.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.
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