Coega refinery to cut SA’s fuel import bill by billions

The proposed 400 000-bl/d crude oil refinery PetroSA is planning to build at Coega in the Eastern Cape, could have a positive impact on South Africa's current account balance, Minerals and Energy Minister Buyelwa Sonjica said on Tuesday

Speaking at an economic cluster media briefing in Pretoria, Sonjica told journalists that the refinery could save the country R18,5-billion a year on the import of petroleum products.

She noted that the country currently imported about 60% of its crude oil requirements.

The Minister added that the refinery could also create opportunities for the export of finished product, which would also positively impact on the country's current account.

However, Sonjica highlighted that the Department of Minerals and Energy was still concerned with the issue of what impact the development of transportation infrastructure from Coega to the rest of the country would have on the country's current account.

The oil refinery, which would now cost about 20% less than the expected $11-billion, was expected to start production by 2014