South Africa's 107,000 b/d Natref refinery in Sasolburg will remain shut until late February to allow for repair work to be carried out following a fire on 4 January. The supply of oil products from the refinery is now expected to resume during March.
South Africa's integrated energy firm Sasol — which owns 63.6pc of Natref alongside UK energy company Prax with the remaining 36.4pc — had already said that the fire would hit output and supply of jet fuel, 93 Ron gasoline and diesel from the refinery, raising concerns over jet fuel shortages in particular.
Bitumen customers of the inland refinery said they had been notified by Sasol this week that "significant damage to equipment and infrastructure" associated with the refinery's crude distillation unit has prevented the firm "from producing petroleum products at the refinery" and that it "may therefore be prevented from performing its supply obligations".
The required damage assessment and repairs would mean the refinery's start-up "should be completed by the latter part of February 2025 and we currently estimate that this will enable us to resume normal supply during the course of March 2025", Sasol said in the notification to customers.
The company added that there is "limited product in tank" and that it is likely those stocks would be depleted before production is resumed.
Bitumen market participants said only about 5,000t of pen 70/100 bitumen is currently in stock at Natref and available for truck sale to domestic and regional buyers.
Natref is South Africa's only remaining bitumen-producing refinery. The shutdown comes just as road and other construction activity picks up following a halt around the festive holiday period.
Sasol officials were unavailable for comment on the refinery's status.