The feasibility study for the proposed $9-billion crude oil refinery at the Coega industrial development zone is expected to be completed by September this year.

In an exclusive interview with Engineering News, PetroSA vice-president for midstream new ventures Joern Falbe states that the feasibility study is progressing to schedule.

As part of this feasibility study, Falbe elaborates, PetroSA is investigating the best funding options for the project as well as the best configuration for the refinery plant.

In addition to the feasibility study, Falbe says, State-owned transport company Transnet is conducting port and pipeline studies to assess the viability of constructing port and pipeline infrastructure to service the Coega refinery.

Once Transnet has completed these studies, the environmental-impact assessment will be able to commence, says Falbe.

While these studies are currently under way, the State-owned petroleum company is engaging in strategic activities to ensure the viability of the project.

“The main priority for PetroSA at this stage is to secure the anchor partner that can supply crude oil and facilitate the marketing of the product,” states Falbe.

“We are in constant discussions with industry that will complement our core business of refining crude oil.”

However, it is not certain when such discussions will be finalised.

PetroSA is also, through the services of HSBC, its financial adviser, undertaking the search for equity partners to facilitate the financing of this multi- billion-rand project.

Falbe admits that this task is proving difficult as the project is still at a very early stage, but PetroSA is confident that it will be able to secure equity partners as the project develops.

Apart from searching for equity and anchor partners, PetroSA is also engaging government to secure political support for the project.

“In light of the recent elections and the subsequent change in Cabinet positions, it is essential to secure political support from the new Ministers,” says Falbe.

“However, we believe that the new National Planning Commission will help to facilitate the advancement of this project.

“It is essential that government understands that this project has significant benefits for the South African economy.”

These benefits include the facilitation of foreign direct investment, the significant reduction of refined oil imports and the creation of jobs in the Eastern Cape.

The proposed Coega refi- nery, which will be opera- ted by PetroSA, will process 400 000 bbl/d of crude oil into predominantly diesel and petrol.

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