SA’s refinery capacity has been reduced: Outgoing BP SA Chairperson – SABC News

BP Southern African retiring Chairperson, Thandi Orleyn, says South Africa’s refinery capacity has been reduced and the market has become import concentrated.

This follows the Mineral and Petroleum Resources department flagging the security of the country’s fuel supply having become vulnerable because of the recent closure of domestic refineries.

This was revealed at the Portfolio Committee on Mineral and Petroleum Resources meeting.

According to Transnet, South Africa’s fuel industry is shifting rapidly, with more than 60% of petroleum products now imported.

This comes as domestic refineries have been shutting down over the years, reducing the refining capacity.

Outgoing BP SA Chairperson, Thandi Orleyn, says this has been a challenge however the global market is changing.

“The challenge that we’ve had, and as you’ve said, our refining capacity as a country has reduced. However, the market has become an import-concentrated market. So, you have to move with the global market. Refineries have been updated to the 21st century across the world,” she says.

Orleyn adds that there has since been a balance in the limited local refinery and imports.

“In respect of South Africa, I don’t believe we have any challenges of security of production or of security of making sure that the country will always be supplied because there’s always the balance between refining locally and importing,” she says.

Currently, South Africa is importing not only crude oil, but refined oil as well, to ensure continuous and sufficient capacity.

Markets shift as refineries close