CEF outlines a roadmap for South Africa’s Sapref refinery revival

South Africa's Central Energy Fund announced plans to revive the Sapref refinery, a move that could more than triple the country's overall oil refining capacity.

Once the largest refinery in South Africa, Sapref has remained idle since early 2022, when Shell and BP halted operations.

CEF outlined a three-phase plan for the refinery's revival on Sept. 9 at a shareholder meeting. The roadmap begins with using the refinery's storage tanks for imported finished products. The second phase targets rebuilding refining capacity at the plant to around 400,000 barrels/day.

The final phase, described in the roadmap as a longer-term objective, is expected to scale throughput up to 650,000 b/d, contingent on investment, regulatory approvals, and project milestones.

"South Africa cannot afford to lose sight of the strategic importance of domestic refining capacity," CEF CEO Tshepo Mokoka said Sept.9, according to a press release. Mokoka said the fund aims to unlock economic value from existing infrastructure.

CEF did not provide details on the deadlines for the plan's implementation. A CEF spokesperson told Platts, part of S&P Global Energy, that the fund plans to publish details and estimated project costs "very soon".

South African refining covers only around 39% of domestic demand, with the remaining volumes imported, according to CEF.

South Africa has been looking into reviving the Sapref refinery since at least 2024 after Shell and BP sold the facility to the state-owned Central Energy Fund in May that year. A CEF representative said in July 2024 that a final investment decision on the refinery was expected by year-end, but confirmation of the project was significantly delayed.

After the closure of the Sapref refinery, South Africa was left with only two operating refineries, with an overall capacity of around 208,000 b/d.