Vivo Energy to invest $130 million in Durban to expand South Africa storage

Vivo Energy, British downstream petroleum company, and a subsidiary of the Vitol Group, is committing $130 million to expand fuel storage capacity in Durban, strengthening South Africa’s ability to withstand global supply shocks and tightening its grip on strategic energy infrastructure.

The investment will lift storage capacity in the key port city by 125,000 cubic meters to a total of 500,000 cubic meters, according to the company’s South African unit, Engen. The project is scheduled to come online between the third quarter of 2026 and Q3 2027.

Turning refinery setbacks into storage gains

The expansion hinges on repurposing aging infrastructure at the former Engen refinery, which was damaged by fire, alongside upgrades to the Island View terminal. The shift reflects a broader pivot across Africa’s downstream sector, where refiners are increasingly converting assets into import and storage hubs.

Vivo Energy’s local unit Engen  Chief Executive Officer George Roberts said the added capacity will act as a buffer during supply disruptions, particularly those linked to geopolitical tensions in key oil transit corridors such as the Strait of Hormuz.

“It gives us more time to secure alternative supply routes,” Roberts noted, adding that shipments to South Africa typically take between 20 and 25 days depending on origin.

Energy security takes center stage

The move comes as African economies rethink fuel logistics following volatility in global oil markets. By increasing domestic storage, South Africa can reduce exposure to sudden supply interruptions while improving inventory management.

Durban remains a critical gateway for fuel imports into southern Africa, making the expansion a strategic play not just for the country, but for the region’s broader energy stability.

Africa-wide expansion strategy

Backed by its parent company, Vitol, Vivo Energy is accelerating investments across the continent. The company is already expanding LPG and refined product storage in Ivory Coast, Senegal and Morocco, while upgrading depot infrastructure in Tanzania and Mozambique.

Vitol, a global energy trading powerhouse, handles millions of barrels of crude and refined products daily and operates extensive storage and refining assets worldwide, reinforcing Vivo Energy’s supply chain capabilities.

Scaling Africa’s downstream footprint

Vivo Energy operates more than 2,600 service stations across 23 African countries under the Shell and Engen brands, supplying fuels, lubricants and LPG to sectors ranging from aviation to mining.

As Africa’s energy demand grows, the Durban expansion signals a strategic shift toward resilience, prioritizing storage capacity and supply flexibility over traditional refining, in a market increasingly shaped by global uncertainty.