Sasol confirmed that the disruptions at the Natref refinery continue to affect fuel supply in South Africa, while the company implements measures to sustain the facility’s operations until the end of September.
The situation began in mid-August when an unplanned shutdown of one of Natref’s units coincided with scheduled maintenance on another. The combination of these two events temporarily reduced the refinery’s capacity to meet its supply commitments.
Located in Sasolburg, Natref has a declared processing capacity of 108,500 barrels per day and it is the only crude oil refinery located inland in South Africa.
Sasol seeks to stabilize Natref’s operations
Sasol it reported that it has implemented measures to keep the affected unit operational until the end of September. The goal is to improve operational continuity and promote greater stability in fuel supply.
The unexpected disruption was related to a failure in a steam boiler that caused damage to important units of the refinery, according to information released by the South African government news agency. While recovery efforts continue, Sasol is also coordinating with various industry stakeholders to minimize disruptions and ensure supply to its main customers.
Aviation fuel is the focus of concerns
One of the most significant effects of the disruption has been on the supply of aviation fuel, especially for customers linked to OR Tambo Johannesburg International Airport, one of Africa’s major air transport hubs.
Faced with reduced availability, Sasol is maintaining partial deliveries and has taken steps to limit the impact on its customers. Some airlines have also turned to alternative suppliers and made operational adjustments to ensure their supply needs are met.
The situation also led the Department of Energy to engage in discussions with Airports Company South Africa and representatives of the fuel industry to assess the risks associated with the supply.
Natref had improved its production before the interruption
The shutdown comes after a period of improved operational performance at Natref; during the three months ending in June, the refinery’s production reached 7.7 million barrels, 8% more than in the previous quarter.
For the entire fiscal year 2026, production reached 25.8 million barrels this represented a 76% increase compared to the previous year. Sasol attributed this growth to greater operational reliability and the utilization of additional capacity from Prax SA during its business rescue process.
The company also temporarily obtained additional capacity from Prax Group, its partner in Natref, as the group continues its recovery process after entering administration in the UK during 2025.
Sasol’s annual fuel sales increased
Meanwhile, Sasol’s fuel sales, including production from Secunda, reached 14.3 million barrels in the fourth quarter of fiscal year 2026, a decrease of 7% compared to the previous quarter.
In annual terms, however, sales increased by 13% to 57.5 million barrels the growth was supported by increased production at Secunda and Natref, along with higher demand in the mobility and marketing channels.
External purchases of fuels also decreased, with Sasol registering a quarterly reduction of 42%, while for the entire fiscal year 2026 they were 51% lower than the previous year.
Sasol improves its results despite operational problems
In the financial sphere, Sasol reported an adjusted EBITDA of 61 million South African rand, approximately $3.78 million, during its fiscal year.
This figure represents a 17% year-on-year increase, driven by higher sales volumes, a rise in the average Brent price, and an improvement of over 100% in refining margins. Meanwhile, earnings before interest and taxes increased by 37% to reach 25.7 million rand.
Meanwhile, operational attention remains focused on Natref, Sasol’s ability to keep the refinery running through September will be crucial to stabilizing the situation fuel supply especially the aviation sector in the South African market.
Source: Rigzone
Photo: Shutterstock
