KwaZulu-Natal bidding for Mthombo refinery

KwaZulu-Natal has decided to bid in competition with the Eastern Cape for the giant R110-billion Mthombo refinery. Projected to refine 360 000 barrels of crude a day into diesel, the refinery could come on stream in the next ten years, according to Vukani Khulu of PetroSA. Speaking at a business breakfast in Port Elizabeth recently, Khulu said government was considering building a state-owned refinery because international oil companies were “withdrawing from downstream activities,” such as the building and operation of refineries. Big oil companies were also pulling their retail operations out of Africa. However, PetroSA would be looking to the oil companies as “anchor partners” to share costs and contribute technology. Shell has offered PetroSA shares in its Durban refinery, which was also referred to by KwaZulu-Natal premier Zweli Mkhize in his state of the province address earlier this year.