Major Milestone Reached For Project Mthombo

OCTOBER 22, 2014

PetroSA says that technical work by Sinopec Engineering Incorporation (SEI) for Project Mthombo was completed at the end of last year which was “a major milestone in preparation for the feasibility study”.

Project Mthombo, the oil refinery planned for the Coega Industrial Development Zone (IDZ), is one of PetroSA’s flagship projects.

PetroSA’s Annual Report, tabled in Parliament, notes that “following a successful pre-feasibility study partnership” between PetroSA and Chinese state oil company Sinopec, the two entities extended their cooperation with the signing of a Framework Agreement in March last year.

It says that in the 2013/14 financial year, the partners “focused on preparations for the implementation of the feasibility phase of the project.

“Discussions with the Industrial Development Corporation (IDC) were initiated, and continue, with a view to expanding the number of project developers. The project partners also explored options to strengthen the partnership by including a crude oil supplier in the feasibility phase of the project.”

The report says that on the technical front, an updated Linear Programming (LP) model was developed by SEI in partnership with the PetroSA technical team.

“Options for integrating the production of petrochemicals into the Mthombo refinery design were also developed.”

The report points out, that Project Mthombo does not only aim at contributing to energy security for the country but is also “a key component of critical infrastructure projects in the Eastern Cape as contained in the National Infrastructure Plan.

“As such, the proposed refinery is set to become a major engine for economic development in the Eastern Cape.”

Looking at progress made in the last financial year, PetroSA says “the review of the business case for the refinery, including options for its configuration, the expected capital costs and refinery economics was jointly completed and approved by PetroSA and its anchor partner Sinopec”.

Looking forward, it states that the discussion with partners for the development of the feasibility study is “ongoing”. - MetroMinutes.


Photo Caption:Coega Industrial Development Zone  is one of PetroSA’s flagship projects. Photo courtesy of