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South African refinery could run out of natural gas in two years

There may not be any gas available between 2020 and 2022, says chairman of Central Energy Fund.

South Africa’s flagship gas-to-liquids (GTL) refinery at Mossel Bay could run out of natural gas within two years when offshore reserves dry up, a senior energy official said on Tuesday.

The Mossel Bay GTL plant, one of the world’s largest, is operated by state-owned national oil and gas company PetroSA, a subsidiary of the government’s Central Energy Fund.

“We are in a position where between 2020 and 2022 we might not have any gas available,” said Luvo Makasi, chairman of the Fund’s board.

He said the Fund was looking to source feedstock elsewhere but did not provide any details, after PetroSA failed to secure additional gas reserves in a $1 billion offshore drilling campaign.

The drilling campaign, which was discontinued after poor results, was stopped after it found only 25 billion cubic feet (bcf) of gas that could be commercially extracted, compared with the 242 bcf of gas that was expected to be found.

The Mossel Bay plant, located on the south coast, accounts for around 6% of South Africa’s refining capacity but is operating at less than half of its capacity of 45 000 barrels per day of oil equivalent due to dwindling reserves.

Besides the financial hit PetroSA took from its drilling campaign, Makasi said it also faced a massive decommissioning bill which could threaten its financial stability.

“That liability is estimated to be about R9.6 billion ($729 million),” he said.

Shell, BP, Total, Sasol and Engen are among operators of oil refineries in Africa’s most industrialised country, which depends on imports to meet rising demand for refined petroleum products.


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Mossgas OFFSHORE has been a big success outlasting original projections.

Hope that there is more success in the future with offshore drilling.

Drilling for hydrocarbons is a high risk affair with more failures than successes.

Mozambique has huge gas reserves. Gas is piped from SIBERIA to EUROPE!

The leadership of this regime is amateurish at best!!

Ever heard of pipes!! Why arent we engaging with Moz as they have a new deposit of gas discovered! They will love the investment and we will love the energy. Typical ANC dumbos, always wait for a disaster and never plan.

I guess they only read the ‘romantic’ parts of Das Kapital and never though planning was ever an element in running a regime.

These Moenas could not organize a pissup in a brewery.
Whatever they do is for personal gain not for Azanian citizens.
Eishkom ,Waterboard,SAA Transnet .Cyril’s R5billion plus unpaid debt to Lonmin,
blah blah blah blah blah

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