Global commodities trader Glencore will restart its Cape Town oil refinery in the fourth quarter this year, more than two years after a deadly explosion shuttered the plant, Chief Executive Gary Nagle said during an earnings call on Thursday.
The 100 000 bl/d refinery is run by Astron Energy, which is majority owned by Switzerland-based Glencore. Two people were killed in an explosion in July 2020.
The refinery is restarting after repairs as well as an upgrade to several units. The company recorded an impairment charge for the plant of $480-million last year.
A shortage of oil refineries across sub-Saharan Africa coupled with soaring crude prices because of the war in Ukraine has left countries dangerously short of fuel supplies, disrupting airlines and causing queues at filling stations.
The refinery restart will provide some relief to South Africa, which is a net fuel importer.
Out of South Africa's six refineries, only Sasol's Natref crude oil refinery and its Secunda coal-to-liquids plant are currently operational.
A Sasol spokesperson said the Natref is ramping back up this week after declaring force majeure on crude oil supplies last month.