South African Mineral Resources and Energy Minister Gwede Mantashe stated that the government is in talks with Saudi Arabia’s firm Saudi Aramco for a new oil refinery in the country.
The Central Energy Fund continues to engage Aramco in a pre-feasibility study into a crude oil refinery in Richards Bay, KwaZulu-Natal. At the moment, the country is waiting for an outcome of the company’s evaluation.
Other than Aramco, South Africa also has French oil major Total exploring the country, bringing another oil and gas drilling rig for the Luiperd prospect in Block 11B/12B off the Mossel Bay coast, according to the minister.
The government also plans to diversify electricity generation sources with gas and renewables account for a significant portion of the power that will be procured in the short to medium term, to accomplish the aim for the country to be a serious player in the global gas market.
Mantashe said that his ministry will progress its gas to power projects through the Coega Special Economic Zone (SEZ) as South African first Liquefied Natural Gas (LNG) import terminal. The projects are expected to lay a foundation for Gas to Power plants and converting existing power plants from diesel to gas.
