Thu 13 Nov 2008, 09:38 GMT

Fire breaks out at Durban refinery


Bunker supplier to import refined fuel in order to avoid shortages.



South African refiner and bunker supplier Engen Petroleum Ltd. has shut down its bunker-producing refinery in Durban after a fire broke out on Thursday morning.

Engen spokesperson Herb Payne said the fire had broken out in the refinery's crude unit, which feeds crude oil into the refinery's processing units.

The incident is reported to have taken place shortly after midnight and the fire extinguished by 3.10 am, according to local reports. The cause of the fire is not yet known.

Initial estimates calculate that the refining capacity of the 125,000 barrels-per-day facility has been reduced by 113,217 bpd following the fire. Engen has said that it will implement contingency plans to import refined fuel in order to avoid any shortages.

Malaysia's state-owned oil company, Petroliam Nasional Bhd. (Petronas) has an 80 percent stake in the Durban refinery, which is one of the principal supply sources for the South African bunker market.

The port of Durban is the country's largest in terms of cargo volume and marine fuel sold. It accounts for approximately 70 percent of total bunker demand in South Africa, which is estimated to be approximately 3.3 million metric tonnes per year. Annual volumes at the port are around 2.3 million tonnes.

Investigations are said to be already under way to determine the cause of the fire.

Engen said that it was not yet able to say when the refinery will be back in operation.


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