South Africa: Dwindling Gas Supplies a Challenge for PetroSA

With natural gas reserves insufficient to keep its gas-to-liquids refinery running beyond next year, national oil and gas company PetroSA is looking out for more gas.

PetroSA must secure additional gas for its Mossel Bay refinery amid falling indigenous gas production. According to the company, its offshore gas reserves will reach the end of their plateau by 2011.
In order to keep the plant running, PetroSA is considering importing gas.

Company vice-president for operations Dan Marokane says importation is the only way to provide additional gas feedstock volumes “with certainty” beyond next year.

Consequences of discontinued operations at the refinery are dire. These include a loss of $1,5bn a year in refinery revenue and loss of tax revenue.

AllAfrica