Gazprombank, a Russian bank, has reneged on a R3.7 billion deal to revive the Mossel Bay gas-to-liquids refinery in South Africa.
The deal, announced in December 2023, was part of the South African government’s efforts to revive the refinery, which has been mothballed since 2019.
However, documents obtained by amaBhungane.org revealed that Gazprombank failed to deliver on its promises, including providing $200 million in funding and $3 million for a feasibility study.
Instead, the bank asked the South African government to provide the funding.
The documents also show that Gazprombank’s bid should have scored only 40 points out of 100, rather than the 80 points it was awarded.
This would have put the Russian bank’s bid in a distant third place.
PetroSA, the South African state-owned oil company, has been left scrambling to find a new partner for the refinery.
The company has been criticized for its handling of the deal, with some accusing it of showing favoritism to Gazprombank.
The collapse of the deal is a significant blow to the South African government’s efforts to revive the refinery and reduce the country’s reliance on imported fuel.
It also raises questions about the government’s decision to partner with a Russian bank, given the sanctions imposed on Russia following its invasion of Ukraine.
In a statement, PetroSA said that it was “currently reviewing its options” regarding the refinery and would make an announcement in due course.
Gazprombank did not respond to requests for comment.
Source: https://energynewsafrica.com
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