Vivo Energy, the African downstream subsidiary of global commodities trader Vitol, is committing about $130 million to increase fuel storage capacity in Durban as South Africa continues to reinforce its fuel import infrastructure.
The development, situated on a decommissioned refinery site, will provide an additional 300,000 cubic metres of storage capacity and is scheduled for completion by the third quarter of 2027.
It will run alongside ongoing rehabilitation work involving roughly 200,000 cubic metres at the nearby Island View terminal.
Over the past ten years, South Africa has experienced a decline in domestic refining capacity, with several facilities shutting down due to financial and operational pressures.
Assets such as the Engen refinery in Durban have since been repurposed into fuel storage terminals.
This transition has increased reliance on imported petroleum products to meet local demand, making storage and logistics systems increasingly critical.
Chief executive George Roberts of Engen, Vivo Energy’s South African subsidiary, said the investment aims to enhance flexibility within the fuel supply chain.
He noted that “having infrastructure in place over the long term makes the system more resilient to supply shocks.”
Greater storage capacity enables the country to maintain larger strategic reserves, giving importers additional time to secure alternative supplies during global disruptions.
Fuel shipments into South Africa generally take between 20 and 25 days depending on the country of origin.
The new facilities will largely be created by converting existing refinery tanks and upgrading systems used for handling and distributing petrol, diesel, and jet fuel.
Industry observers say the initiative reflects a wider continental trend, where investment is increasingly shifting away from refining toward storage and distribution as consumption rises and refining capacity shrinks.
Across Africa, Vivo Energy has been expanding its storage network, including investments in LPG and refined product infrastructure in countries such as Ivory Coast, Senegal, and Morocco. It has also upgraded depot facilities in Tanzania while exploring further growth opportunities.
In Durban, the company is also engaging with the South African government and partners on a proposed gas-to-power project at the same location, although it still requires regulatory approval.
The expansion underscores the growing importance of storage infrastructure in maintaining energy security in markets that depend heavily on imports.