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A deal between South Africa's national oil company and a unit of Russia's Gazprom Group to revive the gas-liquids refinery at Mossel Bay on the country's south coast has entered the feasibility stage, PetroSA has announced.
“The feasibility study of the refurbishment contract with Gazprombank Africa, which provides an overview of all factors influencing the potential restart of the gas-to-liquids refinery, is currently underway.” said PetroSA spokesperson Nonny Masika Dennison. answer the questions.
The company did not respond to questions about the timing of a final investment decision, but said it was likely to be made by Minister of Presidency Khumbudzo Nshabeni in December and by last month.
In December, South Africa's cabinet endorsed PetroSA's recommendation to make Gazprombank Africa the main investment partner for a refinery on the country's southern coast. Production at the 45,000-barrel-per-day facility was halted in 2020 after local reserves were depleted and the company was unable to find any additional natural gas. Ocean discoveries by TotalEnergies SE have the potential to supply the plant.
Both South Africa and Russia are members of BRICS, a group of developing countries that includes Brazil, India, and China. Pretoria has resisted pressure from the United States and its allies to isolate Russia over its invasion of Ukraine, taking a non-aligned position in the conflict and threatening to strike deals with blacklisted Russian companies. They run the risk of being sanctioned.
Refineries in South Africa are closed for a variety of reasons, including accidents and flooding. In 2022, all crude oil plants were shut down, with no production capacity, and only some have since recovered. TotalEnergies SE plans to expand fuel trade in the country, which he estimates meets 80% of its imported fuel requirements.