Angola’s much-anticipated oil refinery in Cabinda is set to commence operations in the first quarter of 2024, ahead of its original timeline.
The project, primarily backed by Gemcorp Holdings Limited, aims to reduce the nation’s reliance on costly fuel imports.
The refinery’s initial phase, which has exceeded its budget due to factors such as the COVID-19 pandemic and inflation, will process 30,000 barrels of Angolan crude oil per day, supplying a significant portion of the country’s domestic fuel needs.
The project’s second phase, planned for 18-24 months after the initial launch, will double processing capacity to 60,000 barrels per day and introduce advanced refining technologies.
This development aligns with Angola’s broader strategy to eliminate fuel subsidies and enhance energy security.
By reducing its dependence on imported fuels, the country can optimize its resource utilization and strengthen its economic position.
However, the project’s success will hinge on securing adequate funding for the second phase, a decision expected in the coming months.
Gemcorp’s investment in the refinery highlights the increasing interest in African energy projects, despite global trends towards renewable energy.
The company’s decision to undertake this venture underscores the potential for significant returns and the critical role of fossil fuels in many African economies.