World’s first crude oil blending terminal in South Africa, to supply Asia in 2017

Starting in 2017, South Africa will start blending different grades of crude oil for export to refineries in and across Asia in the world’s first crude oil blending terminal. This will be the world’s first dedicated crude oil blending terminal, and it will be used to mix different grades of crude oil for export to refineries across Asia and will enable the production of cleaner and cheaper fuels.

The project is estimated to cost in the region of 2 billion rand and the construction of the fuel blending farm (consisting of 12 massive concrete bunkers) is expected to commence in August 2017, with the first output expected for the second quarter of 2017.


Pieter Coetzee, a Director at OiltankingMogs (a joint venture firm developing the terminal) said that they typically take heavy crude oils from South America and blend them with the lighter, sweet crude of West Africa to provide almost any fuel specification for a refinery in the main export target markets:

  • India
  • China
  • Korea
  • Japan

Blending happens within the refineries on a small scale before it gets fed into the refinery, which is currently no longer feasible as they need “the right recipe” coming into the refinery.

The terminal will use a patented system whereby fluid dynamics will be utilized to blend the crude varieties in the tanks using the velocity of the incoming fluid to mix with the crude in the tank.

The terminal will be able to fill a VLCC tanker within 48 hours when fully operational and has already attracted interest from the some of the major global oil companies and oil traders. Each tank will hold a capacity of 1.1 million barrels of crude.

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