The Angolan state oil company, Sonangol, has signed a Memorandum of Understanding (MoU) with China National Chemical Engineering (CNCEC) in Beijing for the construction of the Lobito Refinery.
The MoU stipulates that the parties will raise the necessary financing for the project and may lead to a contract for the construction of this important infrastructure by the Chinese company.
The MoU was signed on June 6th in Beijing, China’s capital, by Gaspar Martins, the president of Sonangol, on behalf of the state oil company. The signing ceremony was attended by the Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, and the President of the National Agency for Oil and Gas of Angola, Paulino Jerónimo. The refinery is expected to start operating in 2026.
The Lobito Refinery represents one of the most important infrastructure projects in the energy sector of the Republic of Angola and will have the capacity to produce up to 200,000 barrels of refined oil per day (bpd). This will allow the Angolan state to become self-sufficient in terms of refined fuels such as gasoline, diesel, liquefied petroleum gas, or Jet A1, as well as enable the country to export and supply neighboring countries. The corporate structure that will own the facility is still open, with 30% ownership by Sonangol and the remaining 70% in private ownership. The Zambian government will have a 15% stake as the country will be connected to the Lobito Refinery through a dedicated pipeline and gas pipeline.
Angola is also building two more refineries, one in Soyo with a production capacity of up to 100,000 bpd, and one in Cabinda, which will produce 60,000 bpd. With these new infrastructures, the Republic of Angola, in addition to becoming self-sufficient in terms of the population’s needs, will be able to reduce imports and establish itself as a regional energy hub, with the capacity to export fuel and gas to the Southern African community.
Increasing capacity in Angola’s downstream sector will be one of the main topics of the upcoming Angola Oil & Gas (AOG) Conference and Exhibition 2023, which will be held on September 13th and 14th in Luanda. During this key event, energy experts, executives, and high-level government representatives from the Angolan, African, and global energy sectors will participate.
The two-day conference will feature panel discussions and presentations focused on the many opportunities in Angola, not only in the oil and gas industry but also in renewable energies, services, and the application of new technologies. Participants will explore diverse ways to make the energy sector profitable and enable greater participation from Angolan entrepreneurs and businesspeople.
