Coega IDZ to get R39bn crude-oil refinery

IN A major boost for the development of a large-scale chemicals cluster in the Coega Industrial Development Zone, PetroSA has announced plans to build a R39-billion crude-oil refinery in the IDZ. This will also boost development plans for the Port Elizabeth city centre and beach-front which are currently stalled due to the presence of a tank farm and manganese ore dump on prime property at the harbour. Dubbed Project Mthombo, the proposed crude-oil refinery is expected to produce about 200 000 barrels of fuel a day and will come on stream in 2014/15. It will complement a planned R5.8-billion chlorine plant. Chlorine and petroleum-based chemicals are the building blocks for a wide range of products, including plastics, fertilisers and pharmaceuticals. “Project Mthombo will be one of the biggest post-2010 investments in South Africa,” says PetroSA CEO Sipho Mkhize. “This project will also significantly improve South Africa’s fuelsimport bill,” Mkhize said.