Chevron Sees Additional South African Oil Refinery Causing Glut
- Economic slowdown has curbed motorists' demand for fuel
- Government has proposed building Africa's largest refinery
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South Africa doesn’t need another oil refinery because the slowing economy has curbed demand and the country has ample gasoline production, said Shash Rabbipal, the new chairman at the local unit of Chevron Corp., the second-largest U.S. energy company.
“Should another refinery be built, it would mean that the country would have to increase its exports of products and this would mean a change from the current practice of ensuring that supply catered mainly for local demand,” Rabbipal, 47, said Friday in an interview in Cape Town. He has worked for Chevron for 25 years and was appointed to the post last week.