South Africa-based Burgan Cape Terminals (BCT) has announced an investment by Thebe Investment for the development of new fuel storage and distribution facilities earmarked for Cape Town Harbour.
Thebe Investment acquired 15% of Burgan Cape Terminals (BCT). Other shareholders include global storage terminal operator VTTI (70%) and Jicaro, a newly established company with experience in the oil and gas sector (15%).
Established in 2008, BCT was formed in response to the severe shortage of storage capacity in South Africa and the government’s drive to improve security of fuel supply and increase storage capacity in line with future fuel demands and the National Development Plan.
Last year, the Port of Cape Town (TNPA) awarded the company a 20-year contract to develop and manage fuel storage and distribution facilities at the Eastern Mole of Cape Town Harbour.
The fuel storage facility in Cape Town Harbour will be multi-purpose and be used for the storage and distribution of both locally produced and imported fuels.
Companies will ‘rent’ space from BCT for storage of their fuel product. Burgan has already signed long-term (10 year) contracts with oil companies, who jointly aim to throughput up to 805,000 m3/year. They will mainly off-take their products from the Chevron Oil refinery. In case of product shortfall, customers have the option to import product subject to the regulations governing the fuel industry. BCT’s state of the art truck loading facility will allow for efficient and swift distribution to end-users with limited impact on the surroundings.
For this project, Burgan entered into a joint venture with Rotterdam-based VTTI, which operates, develops and acquires refined petroleum product and crude oil facilities and energy infrastructure assets on a global scale. Total capital expenditure for the project is estimated to be around R650 million (€45.4 million).