South African oil company, Engen Petroleum, has announced the closure and conversion of its Engen Refinery into an import terminal and product storage facility. With the refinery no longer financially viable – due to COVID-19 impacts, a fire incident at the facility, and ongoing demand fluctuations – the transformation will ensure the project’s sustainability while increasing country-wide fuel security.  

The 120,000 barrels per day refinery is currently the oldest facility in South Africa, supplying approximately 17% of the country’s fuel. With both internal financial issues and global market challenges impacting the refinery, the conversion will not only protect the future of the facility, but provide an alternative, climate friendly fuel solution for the country.  

“Reports confirm that the refinery is not financially viable and indicated relatively minor impact on overall gross domestic product and taxes, while identifying upside benefit such as better security of supply, trade balance improvements and positive environmental impact,” stated Yusa’ Hassan, Managing Director and CEO, Engen, in an article by Engineering News.  

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Source: AfricaOilandPower