Angola is set to witness a major boost to its oil sector as China National Chemical Engineering Company announces plans to construct a $6 billion refinery in Lobito, according to a report by Bloomburg.com
The country will sign a contract with a Chinese company on Friday to build the long-delayed project.
The refinery will have a processing capacity of 200,000 barrels per day, enabling Angola to reduce its reliance on imported petroleum products and increase self-sufficiency, according to officials.
“The processing capacities of the Lobito refinery remain at 200,000 barrels per day, and the estimated cost of the investment is around $6 billion,” Diamantino Azevedo, the minister of Minerals and Petroleum, said in Luanda after a meeting between President Joao Lourenço and the company’s Chairman, Wen Gang.
The construction of Lobito Refinery which has been on the cards for a number of years will allow Angola to sufficiently meet its refined petroleum products demand including liquefied petroleum gas, gasoline, diesel and jet fuel. The project will be the second after the only operational refinery, the Luanda Refinery, which is operated by Sonangol and energy company Fina Petroleos de Angola.
This significant investment will not only enhance Angola’s refining capacity but also create numerous job opportunities and contribute to the country’s economic growth.
Sonangol, the southwest African nation’s state oil and gas group, partnered with an “American company” to conduct studies that led to decreased investment costs and improved refinery quality, Azevedo said, without naming the firm.
In 2022, Sonangol said it was working with Houston-based KBR Inc. on “engineering works” for the facility.
Flush with petroleum, Angola is one of the world’s largest oil producers yet still starved for energy.
The Lobito refinery project, expected to be one of the largest in Africa, is a result of a strategic partnership between ChemChina and the Angolan government.
The Lobito refinery project also aligns with Angola’s goal of emerging as a regional energy hub and promoting value addition within the oil sector. By refining its own crude oil, Angola aims to capture a greater share of the value chain and maximise returns from its natural resources.
