Page 16 - AfrOil Week 43 2022

AfrOil NEWS IN BRIEF AfrOil

Revamping, modernising

and liberalising Angola’s

downstream sector

While Angola represents sub-Saharan Africa’s
largest oil producer, the country’s remarkable
upstream achievements have yet to be replicated
in its downstream sector – which has long been
impeded by insufficient capital investment – that
is, until now.
Angola’s downstream market is in the midst
of major transformation, owing to a state-led
agenda to expand refining, storage and distri-
bution capacity and position the country as a
leading exporter of petroleum products in the
region.
The most prolific development in the sector
is the planned expansion of Angola’s domestic
refining capacity by 360,000 barrels per day
(bpd). This includes the construction of several
new refineries in Cabinda (60,000 bpd), Lobito
(200,000) and Soyo (100,000 bpd), along with
the recent completion of an additional gasoline
production unit at the existing Luanda Refinery,
which is set to reduce the gasoline deficit in the
market by 20% and quadruple the refinery’s gas-
oline production capacity to 1,200 tonnes per
day.
Many of sub-Saharan Africa’s leading oil
and gas producers have, somewhat ironically, a particularly in the eastern region. To further is set to become more lucrative and competitive–
domestic downstream sector that is not suffi- improve access and availability of fuel, Ango- not only because of the additional source of state
cient to meet local demand for gasoline, diesel, lan authorities are prioritising the construction revenue, but also because public funds will no
kerosene and other oil derivatives. Angola is no of fueling stations around the country, with the longer be used to subsidise fuel prices.
exception – the country currently imports 80% Regulatory Institute of Oil Derivatives complet- This article is from the publication Energy
of its refined petroleum products. Accordingly, ing its National Mapping of Service Stations pro- Invest: Angola, which will be distributed at the
the government is addressing downstream ject, of which the country currently has 876. By upcoming Angola Oil & Gas (AOG) 2022 Con-
inadequacies through the expansion of refining the end of 2022, Angola aims to have 891 fuel ference & Exhibition, taking place on November
capacity, which will reduce costly fuel imports stations in its portfolio. 29-December 1 in Luanda.
and position Angola as a secure and independ- In addition to the sheer increase in refining, Energy Capital & Power, October 26 2022
ent energy producer. Once production ramps up storage and distribution capacities, Angola has
from these developments, Angola will be able to been pursuing the progressive liberalisation of
export refined petroleum products and associ- the downstream sector, starting with Presidential PROJECTS & COMPANIES
ated petrochemicals to neighboring countries, Decree 208/19 that established the legal regime
including the Republic of the Congo, Zambia, governing the activities of importing, receiving, PGS awarded 3D contract
Cameroon and the Democratic Republic of the supplying, storing, transporting, distributing,
Congo. marketing and exporting petroleum products. offshore Namibia
The Angolan Government is also spearhead- There are currently four major fuel distributors
ing development with regards to energy storage in Angola – Sonangol, Pumangol, Sonangalp PGS has been awarded a 3D exploration acqui-
and distribution, along with expansion of the and TotalEnergies – with room in the market sition contract offshore Namibia by a major
number of filling stations across the country. Key for new players. With greater liberalisation energy company. Ramform Titan will mobilize
upgrades to Angola’s fuel distribution network expected, the market will see increased competi- for this survey and acquisition is expected to
include the inauguration of the Saurimo Fuel tion and efficiency, resulting in improved access complete mid-February 2023.
Storage Plant, which has a storage capacity of to fuels at a lower price. The implementation of “PGS has many years of experience operating
900 cubic metres, and construction of the Barra fuel and lubricant onshore storage facilities and in Namibia, and we are proud to be part of this
do Dande Ocean Terminal, which will create the construction of gas stations, lubricant facto- exciting new chapter in the country’s offshore
floating storage of oil products and includes a ries, gas networks and branches remain strate- development . The contract secures visibility for
mooring dock for maritime vessels. The lat- gic investment opportunities in Angola for the the Ramform Titan well into the winter season,”
ter will enable Angola to expand its capacity to period 2022-2030. says the President and CEO of PGS Rune Olav
store petroleum products and better serve the By revamping, modernising and liberalising Pedersen.
country’s various provinces around the country, its downstream industry, the Angolan economy PGS, October 24 2022

P16 www. NEWSBASE .com Week 43 27•October•2022