Page 4 - DMEA Week 11 2023

DMEA COMMENTARY DMEA

Angolan refineries

making overdue progress

Projects in Angola are slowly taking shape, and appear set to

improve resource monetisation and economic diversification

ANGOLA AFTER many years of waiting, Angola is the provincial capital and is expected to produce
expected to see the launch of two new refineries gasoline, diesel, fuel oil and Jet A1.
between now and 2026.
This week an update was provided on the Soyo work
WHAT: Angola is 60,000 barrel per day (bpd) Cabinda refinery, Meanwhile, around 100 km to the south,
finally starting to build while work is progressing on the larger Soyo US-based Quanten Consortium is working to
some momentum in efforts plant. The new developments are part of Ango- prepare the site for a 150,000-bpd greenfield
to build out its downstream la’s drive to improve domestic refining to reduce plant at Soyo.
sector. its import requirements. The country imports The group signed a deal in August 2022 with
80% of its oil derivatives and plans are in place Angola Private Investment and Export Promo-
WHY: Opening more for three new plants with a combined capacity tion Agency (AIPEX) for the development of
domestic refineries will of 360,000 bpd. Soyo, an intended greenfield refinery located in
allow Angola to monetise its Currently, the country has just one opera- northern Zaire Province slated for completion
domestic resources. tional refinery, the 65,000 bpd Luanda facility, in late 2025. According to Jornal de Angola, the
which has also been undergoing a $235 devel- project will create “900 direct jobs, of which 77%
WHAT NEXT: opment to expand its capacity to 72,000 bpd (700) are for nationals.”
Two projects underway since 2022 – a development which the Ministry Quanten consists of TGT, Aurum & Sharp
could bring around 210,000 of Mineral Resources has said will aid Angola in and local technical services company ATIS
bpd of new refining saving $200mn in energy export costs. Nebest-Angola. The consortium was awarded a
capacity on stream by the $3.5bn build, own and operate (BOO) contract
end of the decade. Cabinda comments by Angola’s Ministry of Mineral Resources and
The $1bn Cabinda refinery – initially expected to Petroleum (MIREMPET) in 2021, holding a
begin production in 2022 – is now set to begin its 90% stake in the refinery, with NOC Sonangol
first phase of production in mid-2024, with CEO holding the remainder.
Tom Di Giacomo telling an African refiners con- The partners laid the foundation stone in
ference in Cape Town that the first phase would May 2022 in a seven-sq km plot in the town of
consist of a 30,000-bpd crude unit producing Matanga, later announcing that they are work-
naphtha, jet fuel, diesel and heavy fuel. ing to a project timeline that envisages comple-
Speaking to Reuters, he said: “How long will tion in late 2025. Speaking a month later, Segun
the war in Ukraine continue? That’s already Thomas, the consortium’s managing partner,
impacted our procurement, because some said: “What they are doing now is to make sure
prices have increased since the initial expend- the place is landmine free, for which we will
iture plans.” He added: “The government of get a certificate. The project complies with the
Angola wants it to be as soon as possible; how- new private investment policy and responds to
ever, it takes a long lead time for some of the the various objectives identified in the National
procurement of equipment, such as pumps and Development Plan 2018-2022.” According
compressors”. to Quanten’s website and various previous
In February, Marcus Weyll, director-general announcements about the project, the refinery
of the refinery’s key backer, UK-based Gemcorp, will produce gasoline, low-sulphur diesel, jet fuel
said that tests are set to begin at the end of 2023. and asphalt.
He added: “The company is committed to com- Emphasis has also been put on the refinery’s
missioning the refinery’s first phase during Q4, potential to produce cleaner fuels, with Thomas
and will swiftly move forward with work on the noting: “The Euro-5 standard mandates 10 parts
second and third phases.” He explained that first per million for sulphur content; we are going to
crude test runs would begin in the first half of be at 5 ppm,” while there may also be some form
December. of biofuel blending.
Gemcorp holds a 90% stake in the project The consortium’s website notes that its “team
alongside state-owned Sonangol, with the Brit- members, affiliates, subcontractors and advo-
ish firm responsible for the cost of construction. cates may include (subject to negotiations and
This was previously estimated at $920mn, with contracts):” KBR, McDermott, Cisco, Berklee
the first previously quoted at $220mn. The refin- University’s Renewable and Appropriate Energy
ery is being constructed around 30 km north of Laboratory (RAEL), the US government’s

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