So said PetroSA CEO Nosiwe Nokwe-Macamo, with reference to the the Mthombo refinery, at a business breakfast hosted by the Nelson Mandela Bay Business Chamber this morning.
The only tiny problem with that assertion is that we don’t know when the go-ahead will be given for the commencement of construction. At present it is estimated that the project is worth R10 Billion. Put that into perspective by saying that it is the value of 100 new soccer stadiums.
The case for a new refinery is built on a number of premises:
- South Africa is an importer of fuel
- Present refineries will have to undergo upgrading and retrofitting to meet the requirements of the EURO 5 and Euro 6 regulations
- The hope that Shale gas will be discovered in Algoa Bay
- The uncertainty of gas supply in the Mosgas concessionary area
- Securing fuel supply stability for South Africa and SADEC
According to PetroSA:
Project Mthombo is a PetroSA initiative to build a world-class crude refinery in the Coega Industrial Development Zone in the Eastern Cape. Once built, it will be the biggest crude refinery in Africa and it will provide national security of supply for South Africa’s future fuel requirements. In addition, it will bring much needed investment and job opportunities to an area facing significant socio-economic challenges.
National demand for refined fuels already exceeds South Africa’s refining capacity and demand is set to increase further: Diesel consumption is forecast to grow at 4.5% per annum
Read More Here: http://mype.co.za/new/2012/09/we-are-going-to-build-it-in-coega/