Gazprombank has been tasked with reviving of the gas-to-liquid fuel refinery in Mossel Bay South Africa. The country chose the Russian firm as an investment partner for the rehabilitation of the project.
The decision to partner with Gazprombank is seen as part of South Africa’s commitment to increasing trade and investment within the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. Gazprombank secured the contract after 19 other bidders were disqualified on technical grounds.
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Scope of project
The project, operated by the national oil company PetroSA involves refurbishing and recommissioning the 45,000-barrel-per-day GTL refinery at Mossel Bay. The facility has been under maintenance since 2020 due to limited offshore gas resources.
A US $265M agreement has been reached with Gazprombank to support the GTL facility project. The GTL refinery is connected by a pipeline to Mossel Bay, which could potentially facilitate gas supplies from a field owned by TotalEnergies.
“Gazprom will invest on a risk and benefit share basis. Of course, (PetroSA) would have done a risk assessment regarding sanctions. SA is not the first country with ties to Gazprombank or Russian companies. India procures oil from Russia, the EU has ties with Russia, and even the US has ties with Russia. There have been exemptions from US sanctions. What Cabinet considered fundamental was the investment in the country and the benefits of lowering the fuel price,” said Minister in the Presidency Khumbudzo Ntshavheni.