Angola is enhancing its energy security with three new refineries, raising its capacity to 400,000 barrels per day (bpd).
The Cabinda refinery will be commissioned by the end of 2024, followed by the Lobito refinery and Soyo refinery from 2025 onwards.
A statement published on the Angola Oil & Gas (AOG) 2024 pre-conference program, taking place ahead of the main event on October 1, noted that specialist consulting company CITAC Africa will present a workshop entitled Demand and Supply Trends for Refined Products in Africa. Led by CITAC Africa’s Executive Director, Elitsa Georgieva, the session will provide detailed insight into the evolving downstream industry in Africa.
Meanwhile, upgrades to the country’s sole operational refinery, the Luanda refinery, represent a major boost to Angola’s downstream sector.
While the continent’s refinery throughput dropped as low as 365,000 bpd in Q3 2023, sub-Saharan Africa’s refining sector is currently witnessing a significant rebound.
Oil product imports on the continent have increased by 60% over the past decade, while the net shortfall for clean products is expected to narrow substantially from 78.4 million tons in 2023 to 55.9 million tons in 2026.
This comes as a result of refining projects and reaching full capacity.
Efforts to maximise the development of oil and gas resources have led to a wave of downstream developments in Africa’s biggest producing markets. In July, Nigeria’s Dangote Refinery began talks with the governments of Angola and Libya to secure a stable supply of crude oil for its 650,000-bpd processing plant. Situated near Lagos, the $20 billion refinery is the largest in Africa and aims to remove Nigeria’s dependence on imported fuel.
Meanwhile, in an effort to drive South Sudan’s downstream capabilities, the country’s national oil company, Nilepet, is calling on investors to secure funding for the completion of an oil refinery in Block 5A.
The project has amassed a total investment of $29 million, with the refinery’s estimated initial costs currently standing at $3 billion. The completion of the proposed refinery is expected to double the country’s oil production to 350,000 bpd while catering heavy-fuel oil to potential markets in Kenya, Uganda, and the Republic of the Congo.
At the AOG 2024 pre-conference technical session hosted by CITAC, attendees will learn how major refining projects, including those in Angola, are transforming the sector and the trading landscape across Africa. The session will highlight how robust population and economic growth will significantly boost energy demand in the coming years, necessitating diverse energy sources, with oil and gas leading the way.
