The South African government aims to expand domestic oil refining capacity. This ambition comes as the nation grapples with a volatile global energy market. Currently, South Africa has two operational crude oil refineries: Natref and Astron Energy. However, the situation is complicated by the non-operational status of Sapref, the country’s largest crude oil refinery, which has been offline since 2022.
Recent developments have shifted expectations. Vitol Group’s Vivo Energy plans to invest R2.2 billion in building fuel tanks at a former Durban refinery site. This investment signals a potential resurgence in local refining capabilities. Yet, the Astron Energy refinery is currently undergoing a planned maintenance shutdown, further complicating the landscape.
The Department of Mineral Resources and Energy has assured that there is no immediate risk of fuel shortages in South Africa. This assurance comes amid increasing concerns about global energy prices due to geopolitical tensions, particularly related to Russia and Ukraine. The conflict has caused significant disruptions in the oil supply chain.
From March 25 to April 11, 2026, Russia’s oil exports fell to an average of 3.5 million barrels per day. During this period, Russia lost about 30 million barrels in foreign sales. Despite these setbacks, Russian oil revenues increased due to rising prices—a paradox that highlights the complexities of global energy markets.
Experts like Patrick Bond question the need for expanding refining capacity when refined petrol imports are available. He argues for a faster transition to renewable energy sources: “Is it appropriate to expand oil storage or should we not put resources in renewables?” His perspective reflects broader concerns about sustainability in light of current investments in fossil fuels.
In addition to local dynamics, international factors play a crucial role. Ukraine’s attacks on Russian oil export infrastructure have exacerbated supply issues. The long-term impact of these geopolitical tensions on South Africa’s energy strategy remains unclear. Details remain unconfirmed regarding the future operational status of Sapref and its potential revival under the South African National Petroleum Company.
As South Africa navigates these challenges, the balancing act between immediate energy needs and long-term sustainability becomes evident. The government’s strategy will likely continue evolving as new investments materialize and global conditions fluctuate.
