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South African plants owned by Glencore [JSE:GLN] and Petroliam Nasional Bhd that make up 43% of the nation’s oil-refining capacity are expected to stay shut until at least 2022, according to energy consultant Citac.
Astron Energy, a unit of Glencore, has yet to restart the 100 000 barrel-a-day Cape Town refinery after a deadly explosion and fire in July. Petronas unit Engen Holdings’ Durban plant also stopped production in December after a fire.
The closures will force South Africa to rely heavily on fuel imports. All four of South Africa’s oil refineries - with a total capacity of more than 500 000 barrels a day - have had accidents or are under review, with the industry already hit hard by the Covid pandemic.