Angola is taking significant steps to enhance its energy security by developing three new oil refineries, which will collectively increase the nation’s refining capacity to 400,000 barrels of oil per day (bpd).
The Cabinda refinery is scheduled for commissioning by the end of 2024, with the Lobito and Soyo refineries expected to come online from 2025 onwards. This development is part of a broader strategy to strengthen Angola’s downstream oil sector and reduce reliance on imported refined products.
A statement from the Angola Oil & Gas (AOG) 2024 pre-conference programme, ahead of the main event on October 1, revealed that CITAC Africa, a specialist consulting company, will conduct a workshop titled “Demand and Supply Trends for Refined Products in Africa.” This session, led by CITAC Africa’s Executive Director Elitsa Georgieva, aims to provide comprehensive insights into the evolving downstream industry in Africa.
Meanwhile, upgrades to Angola’s sole operational refinery, the Luanda refinery, are set to significantly bolster the country’s refining capabilities. While the continent’s refinery throughput dropped to 365,000 bpd in Q3 2023, sub-Saharan Africa’s refining sector is experiencing a notable resurgence.
Oil product imports in Africa have surged by 60% over the past decade. The net shortfall in clean products is projected to decrease substantially from 78.4 million tonnes in 2023 to 55.9 million tonnes by 2026, thanks to new refining projects reaching full capacity.
Efforts to maximise oil and gas resource development have spurred a wave of downstream projects in Africa’s major oil-producing markets. For instance, Nigeria’s Dangote Refinery began negotiations in July with the governments of Angola and Libya to secure a steady crude oil supply for its 650,000-bpd processing plant. Located near Lagos, this $20 billion refinery is the largest in Africa and aims to reduce Nigeria’s dependency on imported fuel.
Similarly, South Sudan’s national oil company, Nilepet, is seeking investors to fund the completion of an oil refinery in Block 5A. The project has already garnered $29 million in investments, with an estimated initial cost of $3 billion. The refinery’s completion is expected to double South Sudan’s oil production to 350,000 bpd, supplying heavy fuel oil to markets in Kenya, Uganda, and the Republic of the Congo.
CITAC’s technical session at the AOG 2024 pre-conference will highlight how major refining projects, like those in Angola, are transforming the sector and trading environment across the continent. Attendees will learn how Africa’s strong population and economic growth will rapidly increase energy demand and how this demand will be met by various energy sources, with oil and gas playing a crucial role.