DMEA: Partners resume Natref operations

South Africa’s Sasol and its French partner TotalEnergies announced that they have restarted their joint venture (JV) at Sasolburg following the resumption of feedstock deliveries.

Delayed crude oil deliveries caused the JV to close the 107,000 barrel per day (bpd) National Petroleum Refiners of South Africa (Natref) unit, which is one of only two operational refineries in the country, with closures following the announcement of the Clean Fuels 2 (CF2) legislation, which will mandate the use of ultra-low-sulphur gasoline and diesel products when it comes into effect.

Sasol told Bloomberg this week that while the plant remains under force majeure, it is back “online and production ramp-up is in progress”.

The company previously said that investments required to make Natref comply with new industry regulations would be “sub-economical” and the partners are expected to make a call on the plant’s fate later this year, with sale, closure or conversion for storage or blending all said to be under consideration.

However, the South African government last week pushed back the CF2 deadline from 2023 to 2027. While Sasol said it welcomed this decision, it said it would continue to “evaluate options” for the facility.

The legislation back-track follows warnings from the South African Petroleum Industry Association (SAPIA) that the new legislation could make the country’s remaining refineries obsolete within two years without financial support. SAPIA has been working with the government to find a resolution to issues with funding the upgrade of six refineries in the country to allow them to produce cleaner fuels.