The government of Angola through Group Sonangol, the parastatal that oversees petroleum and natural gas production in the Central African country, has made the final investment decision with Gemcorp Capital LLP, an independent investment management firm that is focused on emerging markets across all sectors and asset classes, for the construction of Cabinda Refinery.
The refinery will be located on the Malembo plain, approximately 30 km north of the capital of Cabinda otherwise known as Tchiowa. Phase one of the project will involve construction of 30 000 BPD of the Crude Distillation Unit, with a desalinator, kerosene treatment, and auxiliary infrastructure, including a conventional float anchoring system, pipelines, and storage facility for more than 1.2 million barrels. The total cost for the first phase will be US $220m.
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North American technology
The second and third phase on the other hand totaling US $700m, will involve turning the facility into a total conversion refinery, with an additional refining capacity of 30 000 BPD and the installation of a new catalytic reformer, hydrotreater, and catalytic cracking unit.
The project will be the first private investment of this nature in the country and it will utilize the latest North American technology for its design, operation, and development in 3 phases, with adherence to the Equator Principles.
Construction of a fence for the site started in September 2020 for the 313 hectares of land and the main long-term items were ordered at the beginning of this month. The Refinery is expected to start operating in the first quarter of 2022.
Upon completion the refinery will provide an increase in the capacity for processing crude oil at the national level and a considerable reduction in the country’s dependence on imports of refined products, as provided for in the National Development Plan. It will also create thousands of job opportunities, providing significant long-term benefits for the Angolan economy, especially in the Cabinda region.