ST Energies invests into a supply and storage contract with Matola in Mozambique to embed sustainable energy supply chains in South Africa
The establishment of a new supply chain from Matola in Mozambique into South Africa by ST Energies is designed embed diversity of supply for energy fuel to the country and to provide sustainable support for existing regional supply chains. ST Energies initiated and concluded negotiations for this supply and storage contract out of Matola to help South Africa mitigate its over-reliance on domestic demand from the port of Durban, while ensuring that there is a sustainable supply of fuel to critical to the country and the local energy sector.
Local refinery production faces significant challenges when it comes to security, supply and logistics and the existing refinery market is coming up short and limitations in supply and capacity has meant that the economics don’t work. Much of the supply is being imported into Durban which was not ideal during the unrest earlier this year. This investment is the much needed step that commits to investing into diversity of supply to ensure fuel supply and storage security.
ST Energies negotiated this supply and storage deal to ensure that operations were in place prior to the upcoming refinery shut- downs expected in South Africa by the end of 2023. With this deal in place, the country is assured of a consistent supply of resources that will help overcome the growing challenges of deteriorating supply chains and the current over reliance on Durban port.
The goal of this investment is to ensure that the country receives a consistent supply of energy well into the future, and that systems and processes are put in place before refinery closures and supply chain complexities impacted on business and production.
ST Energies has concluded the negotiations for the supply and storage contract from Matola to South Africa in a move that will take pressure off the country and ensure sustainable storage and supply for the foreseeable future.