South Africa's Rising Fuel Imports Cause Supply Shortage Risk.

South Africa has experienced a significant increase in fuel imports, resulting in potential supply shortages and the need for infrastructure to store and transport the fuel, according to Transnet SOC Ltd, a state-owned logistics firm. In 2023, the country relied on imports for 61% of its petroleum product supply, compared to 22% four years prior, due to refinery closures. This growing dependence on imports leaves South Africa's fuel pipeline system vulnerable to interruptions, which could lead to temporary fuel shortages. Transnet plans to invest in the port of Durban to address these challenges. The decrease in South Africa's refining capacity is due to industrial accidents, the implementation of new low-sulfur fuel standards, and the closure of the Engen oil refinery and PetroSA's gas-to-liquids plant. Despite the challenges, traders have identified opportunities in the situation, with Vitol Group acquiring a stake in Engen and TotalEnergies SE planning to expand fuel trade in South Africa. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)