The state-owned oil and gas company PetroSA and a ”private-sector partner” will build a new coal- or gas-to-motor fuel refinery by 2014, according to Business Report.
Its website quoted a Department of Minerals and Energy official, Nhlanhla Gumede, on Monday as saying the objective of the venture is to cut South Africa’s reliance on imports.
Gumede, deputy director of hydrocarbons, said a team of Cabinet ministers will within two months oversee a study to determine the size and location of the refinery.
”In respect of energy security, it will be important for the state to have some level of control,” Gumede said. ”We must reduce our reliance on imports.”
Business Report said the country needs a new refinery producing 150 000 barrels a day to meet local demand in five years if the government reaches its target of boosting economic growth to 6% by 2010.
Gumede earlier warned that South Africa might need to import diesel from next year.
PetroSA, which had a gas-to-motor fuel refinery on the south-east coast, accounts for only 7% of the country’s transport fuel requirements, Gumede said.
The government wants to increase the state-owned company’s share of the market to help secure energy supplies, he said.
Though the energy ministry held talks over a refinery with Sasol, which supplies about 40% of South Africa’s fuel, PetroSA’s partner has not been chosen.
Gumede said other companies — which he did not name — have shown interest in investing in the plant. — Sapa