Energy company commits R2bn to expand Durban fuel storage

Vivo Energy is investing about US$130 million (R2 billion) to boost fuel storage capacity in the Port of Durban, enhancing South Africa’s resilience against potential supply disruptions.

The project forms part of the ongoing conversion of the fire-damaged former Engen refinery site into a multi-product storage terminal. It will add around 125 000 cubic metres of new capacity, lifting Vivo Energy’s total storage in the Durban area to about 500 000 cubic metres. 

Vivo Energy is the African downstream subsidiary of global commodities trader Vitol.

George Roberts, CEO of Vivo Energy’s local unit, Engen, and an executive vice president at the company, confirmed the plans recently while speaking during the South African Investment Conference in Cape Town.

“This will allow you to increase the stock levels in-country and therefore, if something like this happens again, it gives us more time to go and find product elsewhere to bring to South Africa, given it takes on average 20 to 25 days to ship product to South Africa, depending on where it comes from,” Roberts said.

The additional storage will be created by repurposing old refinery tanks and upgrading a receiving facility at Island View. The new capacity is scheduled to come on stream in phases, starting in the third quarter of 2026 and continuing through to the third quarter of 2027. Products to be handled include diesel, petrol and jet fuel.

The investment was planned prior to recent geopolitical tensions that disrupted Middle East supply routes, but it is expected to provide a vital buffer for the country,  a net importer of crude and refined products that remain vulnerable to international shocks.

Vivo Energy is expanding its storage footprint across Africa. 

Roberts noted ongoing or planned investments in LPG and refined product facilities in countries including Ivory Coast, Senegal and Morocco. In East Africa, the company has recently upgraded depots in Tanzania and Mozambique, with further opportunities under consideration.