Sapref shutdown cuts off bunker supplies to CT

CLIVE EMDON THE SHUTDOWN of the Shell/BP Sapref refinery at Prospecton near Durban has cut off bunker oil fuel supplies to Cape Town while fuel prices in Durban have risen to US$372 a metric ton from US$170 a ton in December. Coinciding as it does with the Middle East crisis, there is no clear sign of where prices are likely to go or when. Sapref reports that the shutdown, prescribed by legislation for maintenance work, will be over by the end of August. No further explanation has yet been forthcoming, and it is not yet known what effect the shutdown has had on the supply of petrol for motor vehicles. Maria Tierney of the marine fuels company Cockett Marine says: “No fuel is available in Cape Town this week (July 24-29). We are having a really tough time. It could have been avoided. It has had a complete domino effect. It has affected agents, the port, everything and everybody.” She confirmed that bunker fuel was available in Durban at US$372 a metric ton. A fortnight ago shipping companies were unable to get a price for bunker fuel and were told delivery might take 10 to 14 days. Last week a Cape Town marine fuels expert said there was no bunker fuel oil available. Both the issues of price and allocation of orders for fuel were caused by the shutdown of the Sapref Refinery. She added that neither Shell nor BP had been in the spot market (cash and delivery) since July 7. The Middle East determines prices for the Far East and South Africa follows these. “At the moment, with the shortages, our prices have gone way up.” Bunker fuel oil is a by-product of the refinery process…the left-overs. Sapref is a 50/50 joint venture between energy multinationals, Shell SA Energy and BP Southern Africa. It is southern Africa’s largest crude oil refinery, with 35% of the country’s refining capacity, which equates to 180 000 barrels of crude oil per day or 8.5 million tons per year. The refinery is located in Prospecton, 16km south of Durban.