A clearer picture of the Russian-linked Gazprombank Africa investment and funding for PetroSA's mothballed Mossel Bay refinery to ensure its self-sustainability would emerge in April, according to Mineral Resources and Energy Minister on Wednesday.
Speaking on the sidelines of the parliamentary committee meeting, Mineral Resources and Energy Minister Gwede Mantashe said, "In April, we will get a budget (from Gazprombank Africa)", emphasising the refinery assets would remain South Africa's.
According to the timelines presented to the mineral resources and energy committee, the technical verification is expected to be completed at the end of April, funding and investment decisions will be finalised by September, with financial close a month later.
Cabinet in December 2023 approved Gazprombank Africa as partner for the PetrolSA's gas-to-liquid (GTL) refinery built to produce synthetic petrol from gas and gas condensate. It has been under care and maintenance since 2020 when gas supplies started running short.
In its decision, the job creation potential was emphasised. "The refinery reinstatement has a potential to retain at least 2,000 direct site jobs, with an additional potential fixed term employment opportunities for 4,000 jobs during the construction phase," cabinet said in its 8 December 2023 statement.
The deal estimated at R3.7-billion is controversial, not least of which is the sanctions imposed on Gazprombank in the wake of Russia's invasion of Ukraine in February 2022. amaBhungane in November 2023 reported the deal was valued...
