South Africa Ends Years-Long Fuel Hub Dispute, Grants Long-Term Leases to Oil Giants
South Africa has resolved a protracted dispute over critical fuel infrastructure, granting oil majors including BP and Vitol extended long-term access to the nation’s primary petrochemical hub at Durban’s Island View Precinct. The breakthrough ends years of uncertainty that threatened investment and supply security at the facility handling 70% of the country’s fuel imports.
Transport Minister Barbara Creecy executed the lease extensions using emergency powers under Section 79 of the National Ports Authority Act, circumventing normal procedures in the national interest. The decisive action came at the request of the Fuels Industry Association of South Africa, which had been advocating for long-term tenure agreements.
“The Section 79 letter was issued to our members and it is in our favour. Remember we wanted a long-term tenure, so we got that,” confirmed Fani Tshifularo, chief executive of the Fuels Industry Association. The resolution paves the way for 25-year lease negotiations between industry players and Transnet National Ports Authority.
BP received approval for Sapref, its joint entity with Shell that has focused on fuel imports at the Island View marine terminal since shutting down refinery operations in 2022. The facility was subsequently sold to state-owned Central Energy Fund. Vitol-majority-owned Engen also secured approval, though specific conditions were not disclosed. The Island View Precinct serves as South Africa’s main storage and supply hub on the east coast, making it critical to the nation’s energy security. The minister’s directive, issued August 29, instructs Transnet to conclude operator agreements for chemical and liquid bulk terminals by March 31 next year.
Sources: reuters.com, bairdmaritime.com
