Refinery Revival Boosts Energy Security

The eThekwini Municipality led a high-level oversight visit to the former SAPREF Refinery in Prospecton.

That is where City Manager Musa Mbhele and Deputy Minister Phumzile Mgcina assessed plans to revive the facility, aiming to strengthen South Africa’s energy security through strategic government collaboration.

The visit marked a coordinated effort between national and local government to restore operations at the now rebranded South African National Petroleum Company (SANPC) Refinery, once a key contributor to the country’s fuel production.

Situated near the Port of Durban, the refinery plays a critical role in KwaZulu-Natal’s petrochemical value chain and broader economic activity. Officials highlighted its strategic importance in ensuring the region remains competitive in global industrial development.

Deputy Minister Mgcina described the visit as more than a routine inspection, emphasising alignment between different spheres of government in advancing the country’s energy agenda. Mbhele reinforced this, noting that the refinery’s revival would serve as a vital asset to both municipal and national economies.

“The project is expected to unlock crude oil supply opportunities aligned with BRICS partnerships, helping diversify energy sources and stabilise fuel prices amid global uncertainty. This approach is seen as key to building a more resilient and self-reliant energy sector.

“Economic projections linked to the restoration are significant, with an estimated 12 500 construction jobs and 2 850 permanent positions anticipated. The project is also expected to contribute around 1.8 percent to South Africa’s GDP, while prioritising inclusive growth through a 65 percent local content target,” said Mbhele

He further said the oversight engagement included technical briefings and strategic discussions focused on aligning infrastructure investment with long-term energy goals, underscoring South Africa’s commitment to sustainable growth and economic resilience.