Angola’s US$6.2 Billion Lobito Refinery Faces US$4.8 Billion Financing Challenge
Angola’s US$6.2 billion Lobito Refinery is at the centre of the country’s push to expand domestic refining capacity and reduce dependence on imported petroleum products, but securing the remaining financing remains a major challenge.
The 200,000-barrel-per-day refinery in Benguela Province is expected to become Angola’s largest refining facility.
The project is designed to support domestic fuel supply while creating an industrial hub for petrochemicals and other downstream industries.
Sonangol has been seeking about US$4.8 billion in financing for the project, including negotiations with Chinese financial institutions. The company has already mobilised about US$1.4 billion.
The financing strategy marks a shift from Angola’s previous reliance on oil-backed borrowing.
A potential project-linked loan would instead be tied more directly to the refinery’s future revenues, allowing Angola to finance construction without pledging crude oil as collateral.
The refinery is being developed in phases, with the first phase targeted for completion in 2027.
Angola’s existing refining network includes the 65,000-bpd Luanda refinery and the Cabinda refinery, while the 100,000-bpd Soyo refinery is also planned.
The Lobito project is currently about 25% complete, with the first EPC phase at 69%. The project has more than 3,100 workers and has recorded financial execution of 39% against an investment of about US$3.8 billion for the current scope.
Beyond improving Angola’s fuel security, Lobito is expected to strengthen the country’s downstream industry and support regional fuel supply.
Its location also gives it strategic importance along the Lobito Corridor, linking Angola’s Atlantic coast with mineral-producing regions in the DRC and Zambia.
Securing the remaining capital will therefore be critical to maintaining construction momentum and delivering Angola’s broader ambition of becoming a regional refining and energy hub.
