Engen to convert SA’s oldest oil refinery into terminal
(Bloomberg) – The Engen oil refinery in South Africa, the country's oldest, will be converted into a terminal capable of importing cleaner fuels after suffering annual losses for much of the past decade.
It would be too costly to refit the plant in Durban, which opened in 1954, to meet evolving emissions regulations, Engen Chief Executive Officer Yusa Hassan said in an interview. The move will be closely watched by companies including Glencore Plc and Royal Dutch Shell Plc, which own stakes in other processors in the country that have experienced accidents or are under review.
Most of South Africa's refineries halted production temporarily last year as lockdown measures to control the Covid-19 pandemic eroded fuel demand. Glencore unit Astron Energy's Cape Town plant was shut by an explosion in July and is expected to resume production some time in 2022. The Engen facility restarted in May but a fire broke out in December, forcing it to shut again.