South Africa says reviving two state refineries could cost over $8 billion

The Central Energy Fund told lawmakers that SAPREF, with existing capacity of 180,000 barrels per day, would first pursue LPG imports and distribution and lease tank space to generate early revenue before any major expansion.

CEF estimated that upgrading SAPREF to between 400,000 and 650,000 barrels per day could require about $7.15 billion. Treasury approval and a final investment decision are targeted for the 2027/28 financial year, but no secured financing package was disclosed.

PetroSA's Mossel Bay gas-to-liquids refinery has been idle since 2020 because of a shortage of gas feedstock. A first phase is planned at 5.8 billion rand for 18,000 barrels per day, followed by another 8.5 billion rand to reach 46,000 barrels per day.

Officials referred to possible financing discussions with institutions including Afreximbank, but that does not mean loans have been approved. N Globe presents the capacity, timing and cost figures as government plans, not as funded projects already under construction.

Verification status: confirmed government plans disclosed to parliament. News value: B. Origin region: Africa (South Africa). Primary section: Economy. Related regions: Africa and worldwide. Source time: September 23, 2026, 06:48 UTC. Report date: September 23, 2026.