The first phase of the 60,000 barrel per day (bpd) high conversion refinery in Cabinda, Angola has been scheduled to commence production in April next year.
This was disclosed by the founder and chief executive of Gemcorp, the project’s largest shareholders, Atanas Bostandjiev.
While speaking to Reuters, Bostandjiev noted that the greenfield project will refine Angolan Cabinda crude, supplied by the Angolan national oil company – Sonangol at a rate of 30,000 barrels per day (bpd), and will supply 5-10% of the country’s needs.
The project’s second phase which is projected to be some 1-1/2 to two years after the refinery starts up, will increase the crude processing capacity up to 60,000 bpd added with a diesel and jet fuel-producing hydrocracking unit.
The new oil refinery project is expected to reduce the country’s dependence on imported fuel. This is especially important as Angola aims to eliminate fuel subsidies and become less reliant on external factors.
The project’s first phase has already reached an investment of $500-550 million, which is higher than the initial estimate of $473 million due to the COVID-19 pandemic and inflation.
The Cabinda refinery’s first phase will include a CDU, desalinator, kerosine treating unit, and supporting infrastructure, as well as a 1.2-million-barrel storage terminal and pipelines.
Recall the refinery was earlier scheduled to start operations by this year end. The plant’s Chief executive, Marcelo Hofke told Reuters in July that the refinery was on track to commence operations this year end before ramping up to full first phase production of 30,000 barrels a day by July next year.
Just like Nigeria, Angola, Africa’s second largest oil producing country fully depends on fuel import for its survival.
According to the OEC, Angola imported $2.16 billion worth of refined petroleum in 2022, becoming the 84th largest importer of refined petroleum in the world during the period.
“Angola currently exports 98% of its crude and imports almost 100% of its refined products from Europe, so imagine how inefficient this whole system is,” Bostandjiev said.
Bostandjiev added that the refinery will start with fuel exports and naphtha which cannot be processed locally, while supplying the local market with diesel and jet fuel.
