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Fuel shortage hits ships
A shortage of marine fuel at South African ports, due to the shutdown of two coastal refineries, has resulted in ships being turned away and has pushed up the price of marine fuel up by $40 to about $380 (R2 600) a ton.
One bunker trader said: "It is difficult to say how many vessels are waiting for fuel. On my books alone I have nine vessels that I cannot get bunkers [marine fuel] for. Over the next two weeks I need 7 000 to 8 000 tons of fuel. I'm not sure where we are going to get it."
Last week the Cape Town Refinery, owned by Chevron, began a partial shutdown. This was initially scheduled for October, but was brought forward to ensure plant reliability. Sapref in Durban, which is owned by Shell and BP, began its statutory two-year maintenance shutdown in June. Both refineries will be fully operational by September.
Colin McClelland, the director of the SA Petroleum Industry Association, said: "Ships will be told of the limited availability so they can refuel elsewhere. It might be done less bluntly than that and instead indicated by price."
Engen Petroleum's communications manager, Barbara Manson, said: "Engen is committed to placing all its marine fuel volumes at the disposal of the shipping market. Although the tight supply situation could cause delays … our belief is that it will not have a major impact on trade."
Nhlanhla Gumede, the chief director of hydrocarbons at the department of minerals and energy, said: "We have planned with industry and do not expect any problems with petrol and diesel supply." But the government does not regulate the marine fuel market.
Of the 21 million tons of crude oil refined each year, about 15 percent is bunker fuel, the bulk of which is supplied through the Durban port. Marine fuel is the residue after crude oil has been refined into petrol, diesel, gas, jet fuel and paraffin. It is bought from oil companies or traders.
Business Report
Last week the Cape Town Refinery, owned by Chevron, began a partial shutdown. This was initially scheduled for October, but was brought forward to ensure plant reliability. Sapref in Durban, which is owned by Shell and BP, began its statutory two-year maintenance shutdown in June. Both refineries will be fully operational by September.
Colin McClelland, the director of the SA Petroleum Industry Association, said: "Ships will be told of the limited availability so they can refuel elsewhere. It might be done less bluntly than that and instead indicated by price."
Engen Petroleum's communications manager, Barbara Manson, said: "Engen is committed to placing all its marine fuel volumes at the disposal of the shipping market. Although the tight supply situation could cause delays … our belief is that it will not have a major impact on trade."
Nhlanhla Gumede, the chief director of hydrocarbons at the department of minerals and energy, said: "We have planned with industry and do not expect any problems with petrol and diesel supply." But the government does not regulate the marine fuel market.
Of the 21 million tons of crude oil refined each year, about 15 percent is bunker fuel, the bulk of which is supplied through the Durban port. Marine fuel is the residue after crude oil has been refined into petrol, diesel, gas, jet fuel and paraffin. It is bought from oil companies or traders.
Business Report
