Vivo Energy to Inject $130m into South Africa Fuel Storage Capacity

Vivo Energy, a subsidiary of Vitol, is set to invest $130 million to expand fuel storage capacity in Durban, in a move aimed at strengthening South Africa’s energy security and cushioning the country against global supply disruptions.

The project will add about 125,000 cubic metres of storage, increasing total capacity in Durban to roughly 500,000 cubic metres. The expansion, expected to come on stream between the third quarter of 2026 and 2027, will enhance the country’s ability to maintain fuel reserves and respond more effectively to supply shocks.

Chief Executive of Vivo Energy’s local unit Engen, George Roberts, said the additional storage would allow South Africa to hold higher stock levels, providing a buffer period to source fuel from alternative markets in times of disruption, noting that shipments typically take up to 25 days.

The investment forms part of ongoing efforts to repurpose the fire-damaged Engen refinery into a storage terminal for petroleum products, including diesel, petrol and jet fuel. It also includes upgrading infrastructure at the Island View facility.

Analysts note that South Africa, like many countries in Southern and East Africa, remains vulnerable to supply shocks due to its reliance on imported refined fuels and limited storage infrastructure, challenges recently highlighted by disruptions linked to tensions in the Middle East.

Vivo Energy is also expanding its storage footprint across Africa, with ongoing investments in LPG and fuel storage facilities in Ivory Coast, Senegal and Morocco, while also exploring further opportunities in East African markets such as Tanzania and Mozambique.