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Wednesday, June 18, 2014
South Africa’s ANC party is hoping that PetroSA’s Mthombo oil refinery will help it regain some of the support it has lost in the Nelson Mandela Bay metro area. The group plans to “politically champion” the oil refinery, and to improve the provision of services to residents and head off protests by establishing a petition committee.
The ANC’s Nelson Mandela Bay secretary, Zandisile Qupe said Project Mthombo “has been talked about for a long time” and the regional ANC wanted to demonstrate that it had the appetite for the project.
Construction on the long delayed refinery, which is expected to have capacity of 300,000-400,000 bpd, was expected to start in 2012 but no real movement has been seen. While the ANC throwing its support behind the project might win it some votes, it is unlikely to get the project moving as it has been deemed by many as being “just too expensive.”
Critics say the project cannot be justified because critical supporting infrastructure is not in place. Infrastructure for the project would have to include pipelines to transport fuel to inland users. Another obstacle could be that according to some it would be constructed in the wrong place as construction of a pipeline to Gauteng could cost up to R40 billion and South Africa’s economy is not equipped to handle that kind of outlay of cash.
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