The world’s first dedicated crude oil blending terminal is expected to deliver its first mixed output by the second quarter of 2017.
Construction work on the $161 million (€145 million) facility, which comprises 12 large concrete bunkers, is expected to start in August Pieter Coetzee, director at OiltankingMogs, told Reuters.
South Africa will be able to mix different grades of crude oil for export to refineries across Asia by 2017.
Coetzee told Reuters: ‘We saw, in terms of environmental legislation worldwide to produce clean fuels, that there is a need for refiners to blend different grades of crude to get that specific clean fuel on the other side.’
The facility will use a patented system where fluid dynamics are used to blend various heavy and light crude varieties, with equipment in the tanks using the velocity of the incoming fluid to mix with the crude in the tank.
Of the 12 tanks, 10 are secured for long-term contracts. Each tank will contain 1.1 million barrels of crude. The entire facility has a total capacity of 13.2 million barrels.