JOHANNESBURG - South Africa needs to expand its oil refining capacity to shield the country from global shocks.
That’s according to Gwede Mantashe, the Minister of Department of Mineral and Petroleum Resources.
He was speaking at the Southern African Oil and Gas Conference, where he stressed the urgency of strengthening the country’s refining infrastructure.
Mantashe says increasing refining capacity will help stabilise fuel prices and reduce reliance on imported refined fuel.
He pointed out that several major companies have exited South Africa’s refining sector, leaving fewer operational facilities.
Mantashe says efforts are underway to revive refineries such as PetroSA facilities to complement existing operations at Sapref and the Astron Energy Refinery in Cape Town.
He warned that without increased refining capacity, fuel prices could become increasingly difficult to control.
The minister also criticised what he called “criminal lobbies” that oppose oil and gas projects through the courts.
Mantashe says while South Africa has strong potential to develop its oil and gas resources, many projects are delayed by legal challenges.
He believes the sector could become a major driver of economic growth if these obstacles are addressed.