Angola is boosting energy security by developing three new refineries, increasing capacity to 400,000 barrels of oil 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, represents 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 in the continent have increased by 60% over the past decade while clean products net shortfall 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 coming on stream and reaching full capacity.
Efforts to maximize the development of oil and gas resources has 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. 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.
Amid this growth, CITAC’s AOG 2024 pre-conference technical session will showcase how major refining projects such as those in Angola are radically changing the outlook for the sector and the trading environment on the continent. Attendees will gain insight into how strong population and economic growth will rapidly increase energy demand in Africa in the coming years and how this demand will need to be met by multiple energy sources – with oil and gas at the forefront.
