Vitol to Invest R2.2bn in Durban Fuel Storage Hub Expansion

Vivo Energy, a subsidiary of the global commodity trader Vitol Group, is investing approximately $130 million (R2.2 billion) to expand fuel storage capacity in Durban, South Africa. The project aims to establish a major storage hub at a former refinery site to protect the import-dependent nation from volatility in global oil markets.

The investment will add roughly 125,000 cubic metres of storage capacity in the port city, increasing Vivo Energy’s total storage in the area to 500,000 cubic metres. According to George Roberts, the chief executive officer of Engen, the local unit of Vivo Energy, the new capacity is expected to come on stream between the third quarter of 2026 and the third quarter of 2027.

Mitigating Global Supply Shocks

The expansion was planned prior to the US-Israeli war with Iran, a conflict that has disrupted global energy markets and obstructed transit through the Strait of Hormuz. Analysts note that South Africa and other Southern and East African nations are particularly vulnerable to supply disruptions in the Middle East because they are net importers of refined petroleum products and crude oil, a weakness compounded by insufficient existing infrastructure.

This will allow you to increase the stock levels in-country and therefore if something like this happens again, it gives us more time to go and find product elsewhere to bring to South Africa given it takes on average 20, 25 days to ship product to South Africa depending on where it comes from

George Roberts, CEO of Engen

The increased storage is intended to serve as a buffer against unexpected supply shocks, providing the country with a larger reserve of fuel while alternatives are sought during international crises.

Strategic Lease Extensions at Island View Precinct

The expansion occurs as the South African government has granted extended leases to several multinational oil traders and majors, including Vitol, BP, and Shell, at the Island View Precinct in Durban. This precinct is a critical petrochemical hub that handles approximately 70% of South Africa’s fuel imports.

Transport Minister Barbara Creecy approved the long-term leases under Section 79 of the National Ports Authority Act, bypassing certain regulatory hurdles in the national interest to ensure supply security and encourage investment.

The move provides stability for foreign energy companies after years of uncertainty regarding short-term contracts. However, the decision has also highlighted the significant influence of foreign entities over the domestic fuel supply chain. BP and Shell, both based in London, and the Geneva-based Vitol already maintain substantial control over import and storage capacity.

This dominance increased following the 2022 closure of the Sapref refinery by BP, and Shell. The refinery was subsequently sold to the state-owned Central Energy Fund, and the companies shifted their operations entirely toward imports.

Broader Energy Investments

Beyond fuel storage, Vitol is also involved in other large-scale energy infrastructure projects in the region. On February 16, 2026, it was reported that the trader is backing a consortium planning to construct a gas-fired power station and liquefied natural gas (LNG) facility at the Durban port, with an estimated cost of $3 billion.

These combined investments in storage and power generation reflect a broader trend of foreign energy firms filling infrastructure gaps in Africa. While these projects secure short-term supply and investment, analysts warn they also deepen South Africa’s reliance on international traders and refiners for finished fuel products.