Sasol Natref Refinery Fire Amplifies South Africa’s Fuel Import Reliance

South Africa’s energy security faces a new challenge following a fire at Sasol Ltd.’s Natref oil refinery on January 4. The incident has left the country with only one operational crude-processing facility, intensifying its reliance on fuel imports.

Natref, the nation’s sole inland crude refinery, plays a crucial role in South Africa’s energy infrastructure, processing 108,000 barrels per day and accounting for 30% of the country’s refining capacity. With this facility offline, concerns over jet-fuel supply to Johannesburg’s OR Tambo International Airport, the largest on the continent, have escalated.

Supply Chain Strains

To mitigate potential shortages, fuel deliveries via pipelines and rail from neighboring Mozambique are being expedited. Airports Company South Africa confirmed these contingency measures in a statement on X (formerly Twitter).

While Sasol has not confirmed a restart date, the Fuel Industry Association of South Africa anticipates operations will resume by February 21.

Diminishing Refining Capacity

South Africa’s refining landscape has faced significant setbacks over recent years, with three of its six facilities shut down due to accidents or the high cost of upgrading to produce cleaner fuels. Currently, only the following remain operational:

• Sasol’s Secunda Plant: Produces synthetic fuels from coal and gas.
• Glencore Plc’s Astron Energy Refinery: Located in Cape Town.

The Natref shutdown underscores South Africa’s growing reliance on imported fuels, as domestic production struggles to meet demand.

Industry Response

To address the increasing need for fuel imports, the Central Energy Fund has applied to take control of assets at the nation’s largest fuel import terminal. Meanwhile, TotalEnergies SE has expressed interest in bolstering supply to the country.

Sasol plans to provide an update on the Natref refinery’s operations next week, as stakeholders await clarity on the plant’s recovery timeline.

A Growing Reliance

The fire at Natref is a stark reminder of South Africa’s energy vulnerabilities. With domestic refining capacity dwindling, the country’s reliance on international imports is growing—a trend that could have far-reaching implications for energy security and economic stability.

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