Angola is boosting its downstream sector through the construction of the Soyo, Cabinda, and Lobito refineries. Once completed, the country will significantly reduce its fuel import costs and accelerate its efforts to energy independence.
LUANDA REFINERY
Ownership: Sonangol (100 percent)
Capacity: 60,000 b/d
Status: As the only operating refinery in the country, the Luanda refinery meets only 20 percent of the market’s needs. In January, last year, Sonangol and Italian multinational Eni signed a $220 million joint cooperation agreement to increase production to 1,200 tons by the end of 2021. The first stage of the agreement includes maintenance and operational improvements, while the second stage is the construction of an additional gasoline production unit, which would reduce the gasoline deficit in the market by 20 percent. In June 2020, Eni awarded the Engineering, Procurement, and Construction contract for the construction of two refining process units to Kinetics Technology.
ANGOLA LNG PLANT
Ownership: Cabinda Gulf Oil Company (36.4%), Sonangol (22.8%), BP (13.6%), Eni (13.6%) and TotalEnergies (13.6%)
Capacity: 5.2 million tons/year
Status: Operating since 2013, the plant is a single train facility that produces liquified natural gas (LNG), propane, butane and condensate. The plant is supplied via a network of pipelines from offshore gas fields on blocks 14, 15, 17 and 18, and from non-associated gas fields Quiluma, Atum, Polvo and Enguia. Plant infrastructure includes LNG storage tanks and LNG loading jetty able to accommodate vessels up to 315m in length.
CABINDA REFINERY (PLANNED)
Ownership: Gemcorp Capital (90%), Sonaref (10%)
Capacity: 60,000 b/d
Status: International tender for the Cabinda refinery began in 2017. In June last year, Sonangol awarded the contract to the United Shine consortium, which includes the construction of a high-conversion refiner that will produce diesel, gasoline, fuel oil and Jet A1. The refinery is expected to be completed by the end of 2022.
LOBITO REFINERY (PLANNED)
Ownership: Unknown
Capacity: 200,000 b/d
Status: The Lobito refinery represents an initial investment of $10 billion. Sonaref, a subsidiary of Sonangol, is currently in negotiations with a group of companies to establish a joint venture to operate the refinery, which is expected to be completed by the end of 2025.
SOYO REFINERY (PLANNED)
Ownership: Unknown
Capacity: 100,000 b/d
Status: In August last year, the Ministry of Mineral Resources and Petroleum launched an international public tender for the construction of a privately-owned oil refinery in Soyo.
With current production meeting less than one-third of domestic oil consumption, Angola’s refining capacity remains severely underserved. As a result, the country has set forth a strategy to develop its domestic refining sector and reduce its reliance upon and associated costs of imported fuel volumes, which currently make up 80 percent of its demand for refined petroleum products. Despite challenges that include prohibitively high capital investment, significant technical knowledge and environmental protection capacity, several new refineries are planned to commence operation from 2019 to 2025.
In a bid to help attract investment into Angola’s energy industry, Energy Capital & Power will host the second edition of the Angola Oil and Gas (AOG) 2021 conference on September 9-10 – an exclusive, transformative, and sector-advancing platform for networking, deal-making, and investment partnerships that will drive Angola’s energy sector growth and success – under the auspices of the Ministry of Mineral Resources, Oil and Gas.
To register for the AOG 2021 virtual networking platform, please visit www.angolaoilandgas2021.com
To learn more about Angola’s energy investment opportunities and sponsorship opportunities at AOG 2021, visit www.angolaoilandgas2021.com or contact sales@energycapitalpower.com.
