The Central Energy Fund (CEF) has partnered with Saudi Arabia’s Aramco to construct a 300,000 barrel per day crude oil refinery on South Africa’s east coast.
Speaking to Reuters, the CEF’s acting group chief executive Kholly Zono said that the refinery is expected to come online by 2028.
Zono said that the development will be the region’s largest refinery and that early indications are that it would cost in the region of $10 billion (R147 billion).
“We are comfortable we have a very solid business case to attract investment and funding from bankers,” he said.
“This refinery will not only increase capacity for South Africa but also the region,” he said, adding it would be funded through a mix of debt and equity.”
He said that a pre-feasibility study will be completed in the next few weeks, after which a more detailed feasibility study will firm up the design and capital cost estimates, followed by front-end engineering and design.