Name of the Project
Refinery-to-terminal (RTT) conversion initiative.
Location
Durban, KwaZulu-Natal, South Africa.
Project Owner/s
South African petroleum products group Engen.
Project Description
The RTT is part of a long-term business sustainability plan to ensure that Engen is resilient against future market threats and can respond quickly to new opportunities.
Engen plans to shut the Engen refinery and convert the site into an import terminal and product storage facility.
The refinery’s long-term sustainability has been undermined by a challenging refining environment, characterised by a global supply glut and depressed demand, which has resulted in low refining margins and has placed the Engen refinery in financial distress. Further, the investments required to upgrade it in line with evolving fuel quality and emissions regulations will also be unaffordable.
The RTT will reduce Engen’s emissions and carbon footprint, which will, in turn, contribute towards Engen’s environmental stewardship commitments. The conversion will also deliver a significant drop in electricity and water consumption, which will mean more electricity and water will be available for underserved households.
Potential Job Creation
Engen plans to preserve as many jobs as possible. It is initiating a reskilling and retooling programme, and evaluating the potential for some employees to be redeployed to other parts of the Engen organisation.
The repurposing of the refinery site is also expected to develop new business opportunities.
Capital Expenditure
No capital-cost estimate for the RTT has been provided.
Planned Start/End Date
The conversion is expected to be completed by the end of 2023.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Engen external communication manager Gavin Smith, tel +27 21 403 4312 or email Gavin.Smith@engenoil.com.