South Africa's Central Energy Fund plans Sapref refinery restart

The Central Energy Fund (CEF) has announced a multi-phase plan to restore the Sapref refinery near Durban to boost South Africa’s domestic fuel production and reduce reliance on imports. The facility, previously the country’s largest crude-oil refinery, ceased operations following flood damage in KwaZulu-Natal in 2022. The CEF acquired the site from BP and Shell in 2024.

The proposed redevelopment consists of several stages. The initial phase focuses on utilizing existing storage tanks and transfer infrastructure to handle imported petroleum products and generate revenue. The second phase aims to rebuild refining capacity to approximately 400,000 barrels of crude oil per day. A longer-term goal envisions a capacity of between 400,000 and 650,000 barrels per day, though this remains subject to investment and necessary approvals.

Currently, South Africa relies heavily on imported fuels, with imports accounting for approximately 61% of the supply. The country’s existing refining capacity, provided by Sasol’s Natref and Astron Energy’s Cape Town plant, processes roughly 208,000 barrels per day. If the CEF’s plan is fully realized, it would more than double the nation’s current oil processing capacity.