AFRICA ALL BUSINESS

ANGOLA’S CABINDA REFINERY SET TO COMMENCE PRODUCTION BY APRIL 2025

ANGOLA’S CABINDA REFINERY SET TO COMMENCE PRODUCTION BY APRIL 2025
Spread the love

Faith Nyasuguta

The long-awaited Cabinda oil refinery in Angola is set to commence production by April 2025, marking a significant milestone in the country’s energy sector. The new refinery, a high conversion facility with a capacity of 60,000 barrels per day (bpd), is expected to play a crucial role in reducing Angola’s dependence on imported fuel.

The project, which has been under development for several years, will begin its first phase of production early next year. The refinery will be commissioned in January-February, with its first supplies of fuels reaching the local market by March-April 2025. This timeline was confirmed by Atanas Bostandjiev, the founder and chief executive of Gemcorp, the project’s largest shareholder.

The greenfield project will refine Angolan Cabinda crude, supplied by the national oil company Sonangol, at an initial rate of 30,000 bpd. This output will cover 5-10% of the country’s fuel needs, significantly improving Angola’s energy security. The project’s second phase, projected to commence 1-1/2 to two years after the initial startup, will increase the crude processing capacity to 60,000 bpd. This phase will also include the addition of a hydrocracking unit for diesel and jet fuel production.

The Cabinda refinery is poised to make a substantial impact on Angola’s economy by reducing the country’s reliance on imported refined petroleum products. In 2022, Angola imported $2.16 billion worth of refined petroleum, making it the 84th largest importer of refined petroleum in the world. Currently, Angola exports 98% of its crude oil and imports nearly 100% of its refined products from Europe, a system that Atanas Bostandjiev described as inefficient.

/VerAngola/


The first phase of the project has already reached an investment of $500-550 million, surpassing the initial estimate of $473 million due to the COVID-19 pandemic and inflation. This phase includes a crude distillation unit (CDU), desalinator, kerosene treating unit, and supporting infrastructure. Additionally, a 1.2-million-barrel storage terminal and pipelines will support the refinery’s operations.

The Cabinda refinery’s construction faced several delays, with the initial plan to start operations by the end of this year. Marcelo Hofke, the plant’s chief executive, told Reuters in July that the refinery was on track to commence operations by the end of the year before ramping up to full first-phase production of 30,000 bpd by July next year.

Once operational, the refinery will not only supply the local market with diesel and jet fuel but will also start with fuel exports and naphtha, which cannot be processed locally. This move aligns with Angola’s broader goal of eliminating fuel subsidies and becoming more self-reliant in terms of energy production.

The successful launch of the Cabinda refinery is expected to bring multiple benefits to Angola. It will create job opportunities, stimulate economic growth, and provide a more stable and reliable fuel supply for the country. Furthermore, it positions Angola as a significant player in the African energy market, potentially attracting further investment in its energy infrastructure.

As Angola prepares for the commissioning of the Cabinda refinery, the country looks forward to a future where it can efficiently meet its energy needs and reduce its dependence on imported fuels. This project represents a significant step towards achieving energy security and economic stability for Angola.

/Courtesy/

The Cabinda refinery’s imminent production commencement marks a pivotal moment in Angola’s energy sector. The project not only aims to satisfy domestic fuel demand but also positions Angola to play a crucial role in the regional energy landscape. The refinery’s impact on the economy and energy security is set to be profound, heralding a new era of self-sufficiency and growth for Angola.

RELATED:

About Author

Faith Nyasuguta

Leave a Reply

Your email address will not be published. Required fields are marked *