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Friday, 25 November 2016 13:34

Jobs highlighted in domestic oil-refinery study

The employment and economic spin-offs of South Africa’s domestic oil-refining sector have received prominence in a new study, which suggests that the country’s six refineries generate yearly economic activity of more than R200 billion and sustain more than 480 000 jobs.

The study , titled “The petroleum industry’s contribution to South Africa”, was commissioned in 2015 by the South African Petroleum Industry Association (Sapia) and has been compiled by KPMG, using 2014 data. It comes amid ongoing uncertainty over the future of the existing refinery fleet, which is ageing and will require significant investment if it is to be able to meet the country’s tightening fuel specifications.

A number of South Africa’s refineries, which have a combined capacity of 703 000 bbl/d, are producing petrol and diesel that are not compatible with the demands of some of the newer automotive engine models, which has led to a significant rise in imports.

Some have even argued that South Africa should take advantage of the global glut of liquid-fuel refinery capacity and rely increasingly on imports. Government policy, however, is supportive of ongoing domestic refining.

Source: Engineering News

Link: http://www.engineeringnews.co.za/article/as-domestic-oil-refinery-debate-continues-study-highlights-big-jobs-contribution-2016-11-16/rep_id:4136

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