PetroSA says its Mossel Bay plant will run out of gas by December 2020 - placing 1,500 jobs at risk
- PetroSA’s gas-to-liquids refinery in Mossel Bay will reportedly run out of natural gas by December 2020.
- This will affect 1,500 direct jobs.
- State-owned PetroSA reportedly has several initiatives planned to keep the plant's doors open.
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One of the world’s largest gas-to-liquid refineries, in Mossel Bay, is reportedly set to run out of natural gas by December 2020, placing 1,500 local jobs at risk.
State-owned PetroSA's facility is operating well below its 36,000 barrels per day, Reuters reported.
A roughly R15 billion offshore drilling campaign in the area was also halted because it didn’t deliver replacement reserves.
Netwerk24 reported that in a presentation to the National Assembly, the cash-strapped PetroSA said it would cost R9.8 billion to close the facility, of which it only has R2.4 billion available.
A closure would effectively bring the Mossel Bay economy to a standstill.
The department of energy, PetroSA, and the Central Energy Fund did not respond to requests for comment.
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PetroSA, which is running at negative cash flow, said it is considering several initiatives to keep the facility’s doors open, Africa Oil & Power reported.
These include reaching out to French oil giant Total after it discovered a huge offshore field containing gas condensate off the South African coast.
IOL reported that PetroSA is also considering extending a gas-to-power facility at Coega, outside Port Elizabeth, to support the gas-to-liquids plant in Mossel Bay.
Another option would be to convert the Mossel Bay facility into a refinery for crude oil at a cost of roughly R4.4 billion, which would see fewer people employed at the facility, Netwerk24 reported.
(Compiled by James de Villiers)
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