Angola: Preliminary Phase of Cabinda Refinery Construction Complete

Luanda — The preliminary phase of the Cabinda Refinery construction came to a completion in May this year, with the demining, clearing and levelling of 93.9 acres of land in which the facility will be built until 2023.

The information is contained in a press release from the project authorities that reached Angop on Wednesday.

According to the source, also complete are the plant's layout and engineering study that provides for a distillation plant for 30.000 barrels/day of crude oil, kerosene merox for Jat A1, storage tanks and support infrastructures.

Meanwhile, Gemcorp, as shareholder and Sonaref partner in the project, has decided to add Usd 30 million to the initial Usd 500 million investment for the construction of the Cabinda Refinery.

The additional amount is meant for the installation of a pipeline system enabling the mooring of large vessels by the refinery to supply local and external markets.

In January 2020, Gemcorp signed a deal with Sonaref, a Sonangol subsidiary, for the construction of the refinery in the Malembo area, 30 kilometers north of the city of Cabinda, northern Angola.

Sources linked to the project admit that the formal start of construction will take place in August this year, and, if so, the first phase of construction may be complete by the end of 2021, with the plant starting with an initial refining capacity of 30.000 barrels/day.

The second phase will increase the refining capacity to 60.000 barrels/day, then allowing the reforming of the naphtha obtained in the gasoline distillation process.

In the third phase, it will also start producing diesel, which means that by the end of 2023, the Cabinda Refinery will be ready to supply the national and regional markets with gasoline, diesel, aircraft fuel and naphtha, thus decisively contributing to the supply of the domestic market and boost Angolan exports.

Gemcorp Capital LLP's Reginald Crawford, underlines the importance of this moment and states that while responsible for the project, they are "working closely with the Angolan authorities and national and foreign contractors so that the delivery of the work takes place within scheduled deadlines.

Once in operation, the Cabinda Refinery will create added value for the Angolan economy and, in particular, reduce its dependence on fuel imports from abroad.

Oil refining in Angola is one of the critical aspects of the sector, since the country imports all the fuels it consumes. The entry into full operation of the Cabinda Refinery will allow the development of the downstream area, as well as the export of fuel to regional markets, emerging as another source of revenue for the Angolan State. In addition, its construction will also generate direct and indirect jobs, mainly for the local population - it is estimated that during the construction phase around 1.600 direct and indirect jobs will be created. Once operational, the Cabinda Refinery is expected to generate around 1.500 direct and indirect jobs.

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