By Lehlohonolo Lehana.
Cabinet endorsed the state-owned oil company’s recommendation that a unit of Gazprom Group be selected as the investment partner to revive its gas-to-liquids refinery in the southern town of Mossel Bay — a move that’s likely to anger the US, which has imposed sanctions on the state-owned Russian firm.
PetroSA’s choice of GazpromBank Africa still depends on a final investment decision on the project, with terms and conditions likely to be finalized in April next year.
This according to Minister in the Presidency Khumbudzo Ntshavheni who was speaking during a post-cabinet media briefing on Monday.
Ntshavheni said the Cabinet had received an update on the progress of reinstating the Mossel Bay GTL refinery as one of the critical components of Petro SA’s turnaround strategy.
She said the government was also briefed on the process followed by the Central Energy Fund (CEF) to source partners with the requisite technical and financial resources to support PetroSA in bringing the refinery back to full operation.
“The preferred partner will share in the risk and the rewards of the reinstatement of the refinery, which has the potential to retain at least 2000 direct site jobs with additional fixed-term opportunities for 4000 jobs during the construction phase,” she said.
Ntshavheni said the cabinet also welcomed the decision to select Gazprom Bank Africa as the investment partner.
“Cabinet noted that this selection of Gazprom Bank Africa is still dependent on the final investment decision that will be informed by a joint-bankable business case as well as the terms and conditions which are anticipated to be finalised in April 2024”.
In January PetroSA issued a request for proposals to establish a partnership for the development, refurbishment, modification, upgrade, funding, and/or operation of its gas-to-liquids (GTL) refinery, in Mossel Bay.
This is as the state-owned company announced intentions to reinstate full production at its Mossel Bay operations.
Production was suspended in 2020 due to reported “feedstock challenges”.
Gazprombank is a shapeshifter: the de facto financial arm of Russia’s state-owned gas company Gazprom, it is also technically a privately owned bank.
Gazprombank has so far avoided the strictest sanctions imposed on Russia.
While eight Russian banks have lost their access to the SWIFT system – blocking all transactions in US dollars – Gazprombank remains open for business.
Evacuation of South Africans from Gaza
Cabinet has welcomed the return of 19 South African nationals who had been stuck in Gaza.
“South Africa extends its gratitude to the Government of Egypt for granting our citizens safe passage through the Rafah Crossing into its country.
“South Africa calls for an immediate and permanent ceasefire and the resumption of talks that will end the violence arising from the continued belligerent occupation and lays the basis for a just and lasting solution, Ntshavheni said.
The six males and 13 females, who were in Gaza since 7 October 2023, are now back on home soil.
Last week, the Department of International Relations and Cooperation said the 19 locals who were approved for evacuation into Egypt by the Israeli authorities on Sunday, 11 November 2023, were en route to South Africa.
NSFAS preparations for 2024
Cabinet has been briefed on measures that are being put in place to avoid the challenges that affected the National Financial Aid Scheme (NSFAS).
Last month, the scheme announced that applications for financial aid for all learners who wish to enter the post-school system and students who do not have financial assistance to continue their studies in the 2024 academic year would officially open on 21 November 2023 and close on 31 January 2024.
Ntshavheni on Monday, Cabinet said the Minister of Higher Education and Training, Dr Blade Nzimande will provide details on measures to improve the performance of the NSFAS.
Nzimande has previously urged all learners who wish to enter the post-school system and students, who do not have financial assistance to continue their studies, to submit their applications for 2024 funding.
He urged all students who wish to study in any of the public universities and Technical Vocational Education and Training (TVET) colleges to apply timeously and not to wait until the last day.