Gemcorp’s high conversion refinery in Cabinda, Angola is set to kick off its production in April next year with a capacity of 60,000 barrels per day (bpd). Atanas Bostandjiev, the founder and CEO of Gemcorp, disclosed this information, highlighting that the project’s first phase will refine Angolan Cabinda crude supplied by Sonangol at a rate of 30,000 bpd, catering to 5-10% of the country’s fuel needs.
The second phase of the project, expected to follow within 1-1/2 to two years after the initial startup, will boost the crude processing capacity to 60,000 bpd, including a hydrocracking unit for diesel and jet fuel production. This development is crucial for Angola as it aims to reduce its reliance on imported fuel and eliminate subsidies, striving for self-sufficiency and independence from external influences.
With an investment of $500-550 million already poured into the project’s first phase, higher than the initial estimate due to pandemic-related challenges and inflation, the Cabinda refinery will include essential components like a CDU, desalinator, kerosene treating unit, and necessary infrastructure, along with a 1.2-million-barrel storage terminal and pipelines.
Initially planned for operation by the end of this year, the refinery’s CEO, Marcelo Hofke, had previously indicated to Reuters that the plant was on track for a late-year startup, with full-scale production slated for July next year. Like Nigeria, Angola heavily relies on fuel imports for sustenance, making the successful establishment of this refinery a significant milestone in the country’s energy sector.
According to the OEC, Angola imported $2.16 billion worth of refined petroleum in 2022, ranking as the 84th largest importer globally. Bostandjiev emphasized the inefficiency of Angola’s current system, where the country exports 98% of its crude and imports nearly 100% of refined products from Europe, underscoring the need for a domestic refining capacity.
The refinery will initially focus on fuel exports and naphtha processing, catering to local demands for diesel and jet fuel. This strategic move is expected to enhance Angola’s energy security and reduce its vulnerability to external market fluctuations.
