SA to get another refinery

[sox63]

http://www.mg.co.za/articlePage.aspx?articleid=323830&area=/insight/insight__economy__business/

Woohoo, just ONE! Even though it is a sizeable one, more are needed.

By the time it starts operating, where will our economy be then. Private sector needs to come to the party, otherwise fuel shortages will continue.

IIRC this will bring the number of refineries in SA to 5/6.

 

[Syndyre]

More definitely are needed but the government also needs to create the conditions that will encourage private sector investment. Not sure a Chavez-linked company is the way to go.

 

[GavinMannion]

By the time it starts operating, where will our economy be then. Private sector needs to come to the party, otherwise fuel shortages will continue.

IIRC this will bring the number of refineries in SA to 5/6.

What fuel shortages? I'm lost....

 

[sox63]

What fuel shortages? I'm lost....

The ones that keep happening in December, when demand is at a peak. Last year it was blamed on a range of things and refinery capacity being one of them.

 

[sox63]

More definitely are needed but the government also needs to create the conditions that will encourage private sector investment. Not sure a Chavez-linked company is the way to go.

Is Chavez linked to PetroSA?

 

[McSack]

Is Chavez linked to PetroSA?

I think he's been linked to the financing the project in some way

 

[McSack]

In any case, is this refinery really a good proposition for South Africans?
Remember PetroSA is the former MossGas and we all know what a monster white elephant, financed by SA taxpayers that turned out to be.

Now I haven't been able to find what SA's current needs are or for that matter what they'll for the foreseeble future, but the envisaged 400,000 barrels capacity for the plant seems like more than we could possibly use. This means that in order to make it worthwhile, a whole lot of the refined product will have to be exported.
My question here is where is SA's competitive advantage in this market when we don't have any crude oil of our own to refine. To import crude for refinement only to have to export the finished product just doesn't make financial sense as far as I'm concerned

 

[Syndyre]

Is Chavez linked to PetroSA?

Not generally but this project has been:

There has been speculation that one potential investor could be Venezuelan state-owned crude oil supplier, Petroleos de Venezuela.
Venezuelan President Hugo Chávez has often spoken about the need for greater cooperation between southern hemisphere nations to reduce the countries’ reliance on developed economies.

 

[Syndyre]

In any case, is this refinery really a good proposition for South Africans?
Remember PetroSA is the former MossGas and we all know what a monster white elephant, financed by SA taxpayers that turned out to be.

Now I haven't been able to find what SA's current needs are or for that matter what they'll for the foreseeble future, but the envisaged 400,000 barrels capacity for the plant seems like more than we could possibly use. This means that in order to make it worthwhile, a whole lot of the refined product will have to be exported.
My question here is where is SA's competitive advantage in this market when we don't have any crude oil of our own to refine. To import crude for refinement only to have to export the finished product just doesn't make financial sense as far as I'm concerned

AFAIK there's quite a refining shortage globally, not sure of the details though. What are the major inputs in a refinery? Maybe labour, electricity costs etc. are cheaper here than in other areas? Although I don't think the electricity price advantage will be maintained for long.