SA will review supplies of petroleum products after the closure of the Engen refinery



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By Reuters Article publication time 15h ago

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DURBAN – South Africa will urgently carry out an assessment of the supply of petroleum products, the Department of Mineral Resources and Energy said on Saturday after the country’s second-largest crude oil refinery closed following a fire.

Engen’s 120,000 barrels per day (bpd) refinery in Durban, majority owned by Petronas of Malaysia, ceased operations when investigations into the cause of the fire began on Friday. Engen said it was taking steps to ensure security of supply.

The refinery closure comes at a crucial time for South Africa as it seeks to boost an economy hit by the Covid-19 pandemic.

The South African Petroleum Industry Association (SAPIA) warned in May that the country was facing a diesel shortage due to a surge in demand as movement restrictions eased.

Africa’s most advanced economy is a net importer of crude oil and petroleum products, with the local market consuming 11,142 million liters of gasoline and 12,539 million liters of diesel in 2018, according to SAPIA.

In July, the country’s third-largest crude refinery, Astron Energy’s 100,000-bpd plant, was hit by an explosion that killed two people and injured several more. The plant remains out of service.

REUTERS



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