MOSCOW (MRC) -- South Africa will urgently conduct an assessment of petroleum products supply, the Department of Mineral Resources and Energy said on Saturday after the country's second-largest crude oil refinery shut down following a fire, said Hydrocarbonprocessing.
The 120,000 barrel-per-day (bpd) Engen refinery in Durban, majority-owned by Malaysia's Petronas, ceased operations as investigations started into the cause of the fire on Friday. Engen said it was taking measures to ensure security of supply.
The refinery shutdown comes at a crucial time for South Africa as it looks to kickstart an economy walloped by the COVID-19 pandemic. The South African Petroleum Industry Association (SAPIA) warned in May that the country was facing a diesel shortage due to a spike in demand as restrictions on movement eased.
Africa's most advanced economy is a net importer of crude oil and petroleum products, with the local market consuming 11,142 million litres of petrol and 12,539 million litres of diesel in 2018, according to the SAPIA.
As MRC informed arlier, there was an explosion on Friday morning at Engen's oil refinery in Durban, police had not yet received reports about whether there had been injuries or deaths. An Engen spokesman told Reuters he would comment later in a statement. According to Engen's website, the Durban refinery has a crude refining capacity of 120,000 barrels per day.
As per MRC, in July, the country's third-biggest crude refinery, Astron Energy's 100,000 bpd plant, was hit by an explosion that killed two people and injured several others. The plant remains out of commission.
We remind that on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day (bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible," the company reported on August, 19.
We also remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC