A Memorandum of Understanding (MoU) has been signed for the construction of the Lobito Oil Refinery in Angola. The MoU was signed by Angola’s national oil company (NOC) Sonangol with China National Chemical Engineering (CNCEC). This agreement will enable financing attainment for the project and construction of this important infrastructure by the Chinese company.
The Lobito Oil Refinery characterizes one of the most significant infrastructure projects in the energy sector in the Republic of Angola. Moreover, the refinery will have the capacity to produce up to 200,000 barrels of refined crude per day (bpd). Additionally, an oil and gas pipeline will be constructed to link Lobito Oil Refinery with Zambia.
Significance of the Lobito Oil Refinery to the Angola economy and neighbouring countries
Additionally, Angola is building two more refineries, in Soyo and Cabinda, whose production capacity is 100,000 and 60,000 bpd respectively. With these new infrastructures, the Republic of Angola will become self-sufficient in terms of the population’s needs. Moreover, it will establish itself as a regional energy hub with the capacity to export fuel and gas to the Southern African community.
Importantly, the Angolan State will become self-sufficient regarding refined fuels such as gasoline, diesel and Liquefied Petroleum Gas. Additionally, the refinery will enable the country to export and supply neighbouring countries.
Angola will not only thrive in the oil and gas industry but also in renewable energies. The Lobito Refinery will further attract services and the application of new technologies. Additionally, participants are exploring many ways of making the energy sector profitable and enabling greater participation of Angolan businessmen and entrepreneurs. This will create many employment opportunities for the locals both directly and indirectly.
Importantly, the economy of Angola will largely benefit from the exportation of refined petroleum products to neighbouring countries. Furthermore, Angola will enjoy improved bilateral relations with the neighbouring Southern African community countries.