Dear Editor
Minister Gwede Mantashe has confirmed to the DA that PetroSA has terminated its deal with Gazprombank Africa to restart the Mossel Bay gas-to-liquids refinery. This comes after months of DA pressure to scrap the deal and find a credible partner.
While we note the termination, the DA demands an internal inquiry at PetroSA into why Gazprombank Africa was selected in the first place, despite lacking the required credit assurance for tender RFP001/2023. Its parent, Gazprombank Russia, was under international sanctions, yet PetroSA and Cabinet still approved this reckless partnership.
Unsurprisingly, Gazprombank Africa failed to provide even the R56 million needed for a feasibility study, let alone the R3.7 billion required for the full project. The inquiry must also determine why it took so long to cancel the contract once it was clear that Gazprombank Africa could not deliver.
The DA further calls for Gazprombank Africa to be blacklisted from all future state contracts. Minister Mantashe and PetroSA’s misguided deal has set back the reopening of the Mossel Bay refinery by years. Had a credible partner been chosen, the refinery could have been on track to reopen in April 2026.
We reject PetroSA’s decision to now turn to Infrastructure South Africa (ISA) to fund the feasibility study – a cost Gazprombank Africa was meant to cover. Instead, PetroSA must re-advertise RFP001/2023 and secure a private sector partner with the financial muscle to drive the project, without state bailouts.
The DA has written to Minister Mantashe requesting a detailed new plan with clear timelines and milestones to restart the refinery. We will continue to hold PetroSA and the Department accountable to ensure energy security for South Africa.
Regards
Sphesihle Zondi MP
A Deputy Spokesperson on Mineral and Petroleum Resources