The South African Petroleum Refineries (SAPREF), located in Durban, KwaZulu-Natal, holds a pivotal position in South Africa’s energy landscape. Previously a joint venture between Shell and BP, SAPREF was the largest crude oil refinery in the country. However, it faced operational challenges and was placed on indefinite shutdown in 2022. Recent developments, including its acquisition by the Central Energy Fund (CEF), signal a renewed focus on bolstering South Africa’s energy security and revitalizing this crucial asset.
SAPREF’s Strategic Importance
SAPREF played a critical role in South Africa’s energy supply, producing essential petroleum products like gasoline, diesel, and jet fuel. Its capacity of 180,000 barrels per day met a significant portion of national demand. However, economic challenges, including high operational costs and market pressures, led to its temporary closure. This decision raised concerns about South Africa’s dependence on fuel imports, exposing the country to supply vulnerabilities and price volatility.
Acquisition by the Central Energy Fund
In 2025, the CEF finalized its acquisition of SAPREF, with plans to rehabilitate and expand the refinery. This move aligns with the government’s vision of increasing domestic energy production to reduce reliance on imports. The refinery’s capacity is set to grow substantially, targeting 600,000 barrels per day, a leap that could transform South Africa into a key player in the regional energy market.
The acquisition also prioritizes job retention, ensuring that SAPREF’s employees transition to the new ownership under comparable terms. This initiative reflects the government’s commitment to balancing energy security with socio-economic stability.
Future Prospects and Challenges
The CEF’s vision for SAPREF includes not only scaling production but also incorporating more sustainable practices. South Africa’s broader energy policy emphasizes a shift towards renewable energy, which could present both opportunities and challenges for traditional refineries. Upgrading SAPREF to integrate cleaner technologies may position it as a modern facility capable of addressing contemporary energy demands while reducing environmental impact.