Coega ranks among top infrastructure projects

National oil company PetroSA’s proposed 400 000-bl/d project Mthombo crude oil refinery has been showcased in a list of the top 100 global infrastructure projects compiled by UK-based Infrastructure Journal and professional services firm KPMG International.

“Infrastructure development is one of the great global challenges of our time. The idea of the Infrastructure100 is to showcase some of the exciting projects that are under way around the world to address this challenge. These are ambitious, yet essential projects,” commented KPMG global head of infrastructure Nick Chism.

The refinery, which was estimated to cost between $9-billion and $11-billion and which was expected to come on stream in 2015, was featured in the Oil & Gas category of the ‘Infrastructure100’ report.

The compilers of the report noted that the project was of “huge economic significance” to the African region and that it would “modernise” South Africa’s “long-outdated” energy infrastructure in the process.

Once built, the refinery would be the biggest in Africa and would reduce South Africa’s reliance on oil imports.

PetroSA estimated that the country would have to import about ten-billion litres a year of fuel by 2015, which would negatively impact on the country’s foreign exchange reserves.

However, it was the project’s expected socioeconomic benefits that made it stand out to the judges.

PetroSA has previously reported that the refinery would provide up to 30 000 temporary jobs during the construction phase and 1 000 permanent jobs once it was operational, as well as a further 15 000 jobs in associated industries.

The researchers highlighted that the project would form an “economic bridge” in the Eastern Cape region, where unemployment was rife.

PetroSA has repeatedly defended the new crude oil refinery while facing criticism from competitors that the project could cost more than expected and that the additional refining capacity might not be needed.

President and CEO Sipho Mkhize has said that the project is in the best interests of the country and that it was in line with government’s Energy Security Master Plan.

The project also had the support of Energy Minister Dipuo Peters.

Rival oil companies, including BP Africa have, however, called for a review of other supply-side options, including the expansion of existing refineries.

Source: Engineering News, 29 June 2010