South Africa plans to rebuild a strategic petroleum reserve to mitigate supply risk, the Minerals Resources and Energy Department (DMRE) said in a July 9 draft policy paper for public comment. DMRE estimates a current shortfall of about 10 mln bbl and proposes a 60-day buffer—roughly 36 mln bbl based on EIA’s estimate of 600,000 bpd—split about two-thirds crude and one-third products. National Treasury and the state oil company will design financing and guarantee mechanisms for the reserve. Unde

South Africa plans to rebuild a strategic petroleum reserve to mitigate supply risk, the Minerals Resources and Energy Department (DMRE) said in a July 9 draft policy paper for public comment. DMRE estimates a current shortfall of about 10 mln bbl and proposes a 60-day buffer—roughly 36 mln bbl based on EIA’s estimate of 600,000 bpd—split about two-thirds crude and one-third products. National Treasury and the state oil company will design financing and guarantee mechanisms for the reserve. Under the plan, licensed wholesalers and importers would be required to hold stocks equivalent to 21 days’ demand. South Africa last expanded emergency stocks in the 1970s with the Saldanha Bay facility (capacity ~45 mln bbl).