State-owned gas-to-fuel company PetroSA has developed a long-term strategy to convert its Mossgas refinery into a light crude oil refinery. It will involve increasing the condensate throughput capacity at the refinery that was designed to process natural gas as a primary feedstock with limited liquid feedstock processing capacity. The refinery’s gas loop will be preserved. PetroSA has previously indicated it plans to invest more than R3bn in the next five years to reposition the company in the upstream and downstream markets in order to ensure its long-term sustainability. Faced with depleting gas supplies from its offshore wells, PetroSA has to develop a new business model to survive. It has presented its turnaround strategy to Energy Minister Tina Joemat-Pettersson. Parliament’s energy committee was informed in a written presentation the liquid feedstock option had been chosen because of the unaffordability of liquid natural gas, especially given PetroSA’s funding constraints.
...Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.