Angola has commenced operations at the long-awaited Cabinda refinery, its first since independence, with production set to begin before the end of 2025.
The over $500 million facility will have an initial capacity of 30,000 barrels per day and serve as the country’s second refinery.
At the inauguration ceremony, Oil and Gas Minister Diamantino Azevedo said the refinery would help reduce Angola’s dependence on fuel imports as the government removes the costly subsidies.
President João Lourenço also attended the event. Azevedo stated: ““By the end of the year, Angola will have the first commercial derivatives produced at this unit.” The refinery is majority-owned by London-based investment firm Gemcorp, while state-owned oil company Sonangol retains 10% and supplies the feedstock.
Gemcorp has said the first phase of the plant will meet between 5 to 10% of Angola’s domestic fuel demand.
Currently, Angola imports about 72% of its fuel needs, roughly 3.3 million metric tons annually, according to Sonangol.
Rising costs linked to pandemic delays and inflation have pushed the investment in the first phase of the refinery to as high as $550 million.
Reuters reports that Cabinda refinery’s second phase will double capacity to 60,000 barrels per day and add a hydrocracking unit to produce diesel and jet fuel. Other downstream projects remain under review.
COURTESY: Legit
