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DMEA: Cape Town refinery to receive US crude

The first US oil shipment to South Africa since 2021 is on its way to the country’s Astron Energy refinery, located in Cape Town, according to tracking data provided by energy data provider Kpler and Refinitiv Eikon. Shut down following an explosion 2020, owner Glencore only recently resumed operations at Astron.

The shipment of light sweet oil – carried by the Bahamian-flagged Sonagol Porto Amboim – forms part of the US’ record high 4.5mn barrels per day (bpd) of exports this year, due to an increase in global oil demand and China’s reopening post COVID-19. This change in imports is notable, as South Africa usually obtains its oil from West and Central Africa, as well as Saudi Arabia, according to Kpler.

South Africa, which has been wrestling with issues around supply of fuels, should see some benefits from the restart of the 100,000 bpd refinery. With most of the country’s refining slate out of commission, shortages of petroleum products are acute. However, with Astron back online, the country should be able to ease some of the strain. Glencore CEO Gary Nagle said in 2022 regarding reopening the facility that "it’s not just a rebuild to what we had before. We’ve actually improved the refinery. We will be able to produce additional products. We've changed the cost base. And we believe that, certainly, we'll bring on that refinery, it will be profitable."