Sasol, Total partnership halting production at South African refinery

Sasol Ltd. and partner Total SA are suspending operations at their jointly owned National Petroleum Refiners of South Africa (Pty) Ltd.’s (Natref) 108,000-b/d refinery in Sasolsburg, South Africa, amid reduced regional demand resulting from measures aimed at reducing the spread of coronavirus (COVID-19).

Beginning on Apr. 9, Natref will halt production at the refinery until further notice, Sasol said on Apr. 8.

The decision follows an unprecedented decline in fuel demand following South Africa’s national COVID-19 lockdown that began on Mar. 27, according to the operator.

Sasol and Total own the Natref refinery through subsidiaries Sasol Oil (Pty) Ltd. 64% and Total South Africa (Pty) Ltd. 36%, according to the companies’ websites.

Separately, Sasol said, until further notice, it was also reducing daily production rates to meet current market demand as a result of COVID-19 by about 25% at its Secunda Synfuels Operations (SSO), which is the world’s only commercial coal-based synthetic fuels manufacturing site to synthesis gas (syngas) through coal gasification and natural gas reforming.

Chemicals production will continue to be prioritized within the revised SSO operating parameters including this cutback scenario.

Despite suspension of production at the Natref refinery and lower production rates at SSO, Sasol said it will continue to meet South Africa’s current demand for fuels and chemicals, including sanitizers, by prioritizing production of chemicals at its regional operations.

Given these developments as a result of reduced demand, Sasol said it expects liquid fuels sales volumes for 2020 to average 50–51 million bbl, down from its previous guidance of 57–58 million bbl. Synfuels production also will fall to about 7.3-7.4 million tonnes/year from an earlier estimate of 7.7-7.8 million tpy. Synfuels chemicals production for 2020 remains on track amid ongoing demand within South Africa and abroad, the operator said.