Energy Minister Edna Molewa has ordered that the portion of the 20-year Liquid Fuels Infrastructure Road Map Project covering the review of existing refining infrastructure be expedited.
And she warned in a statement that decisions on big infrastructure projects “need to be taken soon because the time between taking a decision and the actual construction and operation tends to be long”.
The Minister said it was “without doubt” that South Africa needed to improve its domestic refining capacity to meet the increasing demand for liquid fuels.
Molewa said she wanted the review of existing refining capacity expedited because of concerns over the “increasing frequency and severity of unplanned refinery shutdowns”.
As a result South Africa was “perpetually importing finished products”.
The Minister said the supply became “even more constrained” during planned shutdowns, where there was an increased reliance on imports of liquid fuels.
“This situation is further worsened by unplanned shutdowns, particularly when these coincide with an unplanned shutdown.
“Extended shutdowns, that is shutdowns that go beyond their expected start-up dates, have generally increased, thereby further complicating matters.”
Molewa said the oil industry had recognised this “sorry state of affairs” in a presentation to Parliament on November 2.