New Competition for Dangote As Another Refinery Begins Fuel Production After 50 Years
- Angola’s long-awaited Cabinda refinery, the first built since independence nearly 50 years ago, is now ready
- The refinery will begin producing fuel before the end of 2025 and have a capacity of 30,000 barrels per day
- The project is expected to help the country become self-reliant and possibly export fuel to other African countries
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
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.
Source: Getty Images
Angola gets another 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, 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
Project details
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.
Meanwhile, the government is reassessing other downstream projects. The proposed 100,000 bpd Soyo refinery is under review following challenges with its U.S.-led private developer, Quanten Consortium.
Azevedo also said that the construction of the 200,000 bpd Lobito refinery will restart following a “thorough review” and cost-reduction plan, despite a $4.8 billion funding shortfall.
Source: Getty Images
The refinery project by Angola is expected to add to the growing competition for Dangote Petroleum refinery.
Dangote upgrades refinery capacity
The Dangote Petroleum Refinery is undergoing modifications to boost its capacity from 650,000 barrels per day to 700,000 barrels, Punch reports.
The upgrade, which will add 50,000 barrels per day to the facility’s nameplate capacity, is expected to be completed in the fourth quarter of this year.
Dangote refinery export fuel to US
Earlier, Legit.ng reported that the Dangote refinery has exported 1.7 million barrels of jet fuel to the United States.
According to ship-tracking service Kpler, this shipment arrived at US ports on Monday.
Further data from Kpler indicates that another vessel, the Hafnia Andromeda, is scheduled to dock at the Everglades terminal by March 29, carrying approximately 348,000 barrels of jet fuel.
These exports highlight the refinery's expanding footprint in North America and Europe.
Source: Legit.ng
