Central Energy Fund sets out three-phase plan to restore Sapref refinery

The Central Energy Fund has outlined a three-phase plan to return the former Sapref refinery in Durban to productive use, starting with fuel storage and imports while a larger rebuild is developed.

The state-owned group said the first phase would use the site's existing tanks and transfer infrastructure to handle imported finished petroleum products. That stage is intended to generate revenue while planning continues for the refinery itself.

The second phase would rebuild refining capacity to about 400,000 barrels of crude oil a day. The longer-term plan envisages capacity of between 400,000 and 650,000 barrels a day, according to the fund's presentation to community stakeholders.

No funding model or completion timetable has yet been announced. The CEF said the redevelopment would need to be commercially sustainable as well as support South Africa's energy security.

Sapref was previously the country's largest crude-oil refinery. Operations were suspended in 2022 and the site sustained damage during the KwaZulu-Natal floods. The CEF acquired the refinery from BP and Shell in 2024.

The proposed capacity would be a major expansion of domestic refining. S&P Global reported that South African refineries currently meet about 39% of the country's demand, leaving the fuel market heavily dependent on imported products.

The plan is still at the development stage. The immediate use of storage and transfer infrastructure is therefore the most defined part of the programme, while the size, financing and timing of the new refining units remain to be settled.

The CEF has presented the project as part of a broader effort to rebuild domestic fuel-processing capacity. Further milestones will depend on technical work, investment decisions and the approvals required for the redevelopment.