New S Africa refinery to be built in Richards Bay

A planned new refinery in South Africa — backed by Saudia Arabia's state-owned Saudi Aramco — is likely to be located at Richards Bay, in Kwa-Zulu Natal, energy and mining minister Gwede Mantashe said today.

South Africa and Saudi Arabia reached a framework agreement for the planned investment in a new refining and petrochemicals complex in January this year. Richards Bay was Aramco's preferred choice, while Coega in the Eastern Cape was one other location considered by government.

"Let's not allow differences of opinion over location to hold up the process, because then we risk losing the investment," the minister said. "If the investor wants it in Richards Bay, then we will build it there and take LNG to Coega instead," he said.

Aramco's proposed investment in the refining complex at Richards Bay will be in excess of $10bn, Mantashe said. Saudi Arabia supplies 40pc of South Africa's imported crude.

The country's Central Energy fund (CEF) and Saudi Aramco have concluded a non-disclosure agreement and a memorandum of cooperation, the minister said.