Refinery problems threaten bunker crisis

Leonard Neill SOUTH AFRICAN harbours are facing a possible fuel oil crisis for bunkering purposes following problems that have arisen at refineries in both Durban and Cape Town. "The situation is serious enough right now, and it could develop into a major headache unless the ongoing repairs in both centres are completed in quick time, and the quality of crude oil on offer is upgraded," a Cape Town source told FTW. The Cape Town Caltex refinery was forced to shut down one of its crude oil units last week when an overhead line leak was discovered. Production was halved with only contracted clients being supplied and the refinery announcing that it would be without general stock until March 17. Durban's Engen refinery has announced it will be out of stock until March 18 as a result of work being undertaken, while the BP refinery is quoting only on direct orders at present. The only refinery quoting publicly is Shell which is, according to FTW's source, "keeping the flag flying while still having line repairs carried out." One of the major problems at present appears to be the shift of all refineries to a very light form of crude which has little fuel oil in it. In Richards Bay vessels are drawing on available stock which is said to be adequate, but uncertainty exists on replenishment. "The source of the new light crude is uncertain, and the refineries are not prepared to disclose it," FTW was told. "Until a better supply of crude containing stronger fuel oil in it is re-established, we are facing grave problems."