Cape Town – Cabinet has approved a partnership between PetroSA and Russia’s Gazprombank to restart a gas-to-liquids refinery in Mossel Bay.
This was said by Minister in the Presidency Khumbudzo Ntshavheni during a post-cabinet media briefing on Monday
Despite Gazprombank being under sanctions due to Russia’s actions in Ukraine, the minister defended the move, saying that it would lower fuel prices and aligns with South Africa’s collaboration with BRICS nations (Brazil, Russia, India, China) to boost trade and investment.
“Cabinet was updated about the process followed by CEF to source partners with requisite technical and financial resources to support PetroSA in bringing the refinery back to full operation. The preferred partner would share in the risk and rewards of reinstatement of the refinery.
[Watch live] Minister Khumbudzo Ntshavheni briefs media on outcomes of special Cabinet meeting held on 8 December 2023 #PostCabinet https://t.co/EqKu303HSg
— South African Government (@GovernmentZA) December 11, 2023
“Cabinet endorsed PetroSA’s recommendation to select GazpromBank Africa as the investment partner for the re-instatement of the plant and production.
“Cabinet noted that this selection of GazpromBank is still dependent on the Final Investment Decision that will be informed by a joint bankable business case, as well as all the terms and conditions, which are anticipated to be finalised in April 2024,” she said.
Ntshavheni added: “The refinery reinstatement has a potential to retain at least 2000 direct site jobs, with an additional potential fixed term employment opportunities for 4000 jobs during the construction phase.”
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Compiled by Betha Madhomu
