- Vivo Energy to add 125,000 cubic meters of storage in Durban
- Additional capacity will help protect South Africa from future supply shocks
- Vivo eyes East Africa – Uganda, Tanzania and Mozambique for more storage investment opportunities
Vivo Energy, a subsidiary of global trader Vitol, is investing about $130 million to expand its fuel storage capacity in Durban, South Africa's major port city along the east coast, a senior company executive said on Tuesday. George Roberts, chief executive of Engen, Vivo Energy's local unit, said the investment, planned before the US-Israel war with Iran disrupted global energy markets and closed the Strait of Hormuz transit route, could help South Africa better cope with future supply crises.
Southern and East African countries, including South Africa, which is a net importer of crude and refined petroleum products, are vulnerable to Middle East supply disruptions, analysts said, a problem exacerbated by inadequate infrastructure and storage capacity.
Roberts told Reuters the company is adding about 125,000 cubic meters of storage capacity in Durban to bring its total storage capacity to 500,000 cubic meters, which is expected to be operational from the third quarter of 2026 to the third quarter of 2027 and will help act as a future buffer against unexpected supply shocks coming from the Middle East.
“This will allow you to increase stock levels in the country and so if something like this happens again, it gives us more time to find product elsewhere to bring to South Africa, because it takes on average 20, 25 days to send product to South Africa, depending on where it comes from.”
The additional capacity comes from converting old refinery tanks in Durban and upgrading another receiving facility in Island View, part of Vivo Energy's ongoing efforts to convert the fire-damaged Engen refinery into a storage terminal for a range of products including diesel, petrol and jet fuel.
Vivo Energy, which markets the Shell and Engen brands except in South Africa, is a leading African fuel retailer with more than 4,000 service stations across the continent. The company is currently investing in LPG and refined petroleum storage facilities in Ivory Coast, Senegal and Morocco, Roberts said.
“In addition to Uganda we have invested in our depot assets in Tanzania and Mozambique in recent years and if the right opportunity arises in those countries, we may invest further,” Roberts said.
Source: reuters