Ricochet News

Study on localisation opportunities from project Mthombo

Sep 17, 2014
Study on localisation opportunities from project Mthombo

The Department of Trade and Industry has commissioned a study into the localisation opportunities that could flow from the construction of Project Mthombo, the oil refinery planned for the Coega Industrial Development Zone.

The department’s Progress Report on the Industrial Performance Action Plan (IPAP), tabled in Parliament, states that the localisation programme is being developed in conjunction with PetroSA.

It states that the work is being headed up by the department’s Metals Fabrication Chief Directorate, adding that the study is expected to be completed by November this year.

The feasibility study on a smaller version of Project Mthombo being under-taken by PetroSA and its partners Chinese state oil company Sinopec and the Industrial Development Corporation (IDC), is scheduled to be completed by the end of this year.

Thereafter, Cabinet will decide whether to proceed with the Front End Engineering Design (FEED), which is the next phase of the multi-billion Rand project.

The study being undertaken by DTI is a strong indication that Project Mthombo is still very much part of government’s plans for the energy sector.

It was mentioned by former Energy Minister Dipuo Peters, along with Nuclear 1 at Thyspunt, shale gas and the plethora of wind and solar initiatives, as grounds for suggesting the Eastern Cape would be the country’s next energy hub. - metrominutes


IMAGE sourced from thenetworks.co.za