Vivo Energy, a subsidiary of global trader Vitol, is investing about $130 million to significantly expand fuel storage capacity in Durban, South Africa’s major port city on the east coast, according to a senior company executive on Tuesday.
The investment, which was planned before the U.S.-Israeli war with Iran disrupted global energy markets and restricted flows through the Strait of Hormuz, is expected to strengthen South Africa’s resilience against future fuel supply shocks.
George Roberts, chief executive officer of Vivo Energy’s local unit Engen, said the expansion would help the country better manage potential crises.
South Africa, along with several Southern and East African countries, is a net importer of crude and refined petroleum products and remains vulnerable to supply disruptions from the Middle East. Analysts say this vulnerability is worsened by limited infrastructure and insufficient storage capacity.
Roberts told Reuters that the project will add around 125,000 cubic metres of storage capacity in Durban, raising total capacity in the area to 500,000 cubic metres.
The new facilities are expected to come online between the third quarter of 2026 and the third quarter of 2027, acting as a buffer against unexpected supply shocks, particularly those linked to Middle East instability.
“This will allow you to increase the stock levels in-country and therefore if something like this happens again, it gives us more time to go and find product elsewhere to bring to South Africa given it takes on average 20, 25 days to ship product to South Africa depending on where it comes from,” he said.
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The added capacity will come from converting old refinery tanks in Durban and upgrading another receiving facility at Island View, as part of Vivo Energy’s broader plan to repurpose the fire-damaged Engen refinery into a storage terminal for products including diesel, petrol, and jet fuel.
Vivo Energy, which distributes Shell-branded fuel outside South Africa and Engen products locally, operates as one of Africa’s largest fuel retailers with more than 4,000 service stations across the continent.
The company is also investing in LPG and refined petroleum storage projects in Ivory Coast, Senegal, and Morocco, according to Roberts.
“Besides Uganda we have invested in our depot assets in Tanzania and Mozambique in recent years and if the right opportunity comes up in those countries, we could invest more,” Roberts said.
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Image Credit: Business Insider Africa
