Page 5 - Downstream Monitor - MEA Week 34

DMEA Commentary DMEA The Angola LNG facility
production from the re nery from 2,000 bpd to 8,000 bpd by mid-2021, with output being both higher quality and more environmentally friendly.
fuel reservations
A presidential degree on July 1 sought to estab- lish “the legal regime to which crude oil re ning, importing, receiving, supplying, transporting, distributing, trading and exporting petroleum products are subject”.
is was followed soon a erwards by a gov- ernment decree, which stipulated that a 30-day fuel reserve should be set up to prevent fuel shortages from happening again.
e presidential order, which was backdated to January 1, said that the reserve would contain volumes of gasoline, diesel, Jet-A1, Jet-B and ker- osene to provide security of supply. It added that an additional 20-day reserve of butane (cooking gas) must be established for the same reasons.
Angola is reliant on imports for around 80% of its refined product demand, with the rest being processed at the country’s only function- ing re nery in Luanda.
e latest announcement will come as little surprise to keen Angola watchers, though con- sidering the project’s patchy history, there is less certainty surrounding what comes next. Most intriguing will be the long-awaited award of con- tracts for the development of the Lobito re nery, which has also su ered a similar stop-start time- line. However, much like the Dangote group- backed facility under construction in nigeria, the scale of the Lobito unit means that its com- pletion would be instantly transformational for the host country and turn it from an importer of petroleum products into a signi cant exporter.
With the Cabinda, Lobito and Soyo facil- ities all scheduled to come into operation by 2025, further announcements should be forthcoming.™
in Soyo
Location of Angola’s existing and planned downstream facilities ecluding the exclave of Cabinda.
Week 34 29•August•2019 w w w . N E W S B A S E . c o m
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