Cabinda refinery set to boost Angola’s fuel production by year-end

Angola’s President João Lourenço on September 1 inaugurated the first phase of the Cabinda refinery, the country’s first refinery to be built in almost 50 years.

The Cabinda refinery, a public-private venture between Angola’s national oil company Sonangol (10%) and UK-based private investment and commodity trading firm Gemcorp (90%), is set to start producing and selling petroleum derivatives before the end of 2025, initially operating at 30,000 bpd.

The new refinery will produce diesel, heavy fuel oil, jet fuel and naphtha, according to Energy Capital and Power (ECP), with Sonangol supplying feedstock. The refined petroleum products will then be returned to the NOC.

“Today we can affirm that the Cabinda Refinery is entering its decisive phase and that, by the end of the year, Angola will have the first commercial derivatives produced at this facility,” Angola’s Minister of Mineral Resources, Petroleum and Gas Diamantino Pedro Azevedo said at the inauguration ceremony.

“What we inaugurated today in Cabinda is much more than a refinery. It is proof that with political leadership, institutional courage, and technical competence, Angola can produce, transform, and develop its mineral resources while preserving its sovereignty,” the minister stated as quoted by ECP.

A second phase will expand its capacity to 60,000 bpd, nearly doubling Angola’s total refining output. This new facility will markedly reduce the nation’s dependence on imported fuel, complementing the Luanda Refinery, Angola’s only other operational refinery, which currently produces 65,000 bpd. According to Sonangol, Angola imports roughly 72% of its domestic fuel needs, equivalent to about 3.3mn metric tonnes of refined petroleum products annually.

Construction of the Cabinda Refinery began in 2019 but encountered repeated delays owing to the Covid-19 pandemic and logistical challenges. Phase one was financed by African institutions, notably the Africa Finance Corporation and African Export-Import Bank. However, the project’s cost has exceeded an initial estimate of $473mn.

Last year, the plant’s largest shareholder Gemcorp told Reuters, that investment for the first phase reached $500mn to $550mn. According to the media agency, the London-based investor has previously said the first phase would supply 5% to 10% of the country’s fuel needs.

While Angola is Sub-Saharan Africa’s second-largest oil producer after Nigeria, it relies heavily on fuel imports owing to limited domestic refining, with only the Luanda refinery operating until Cabinda comes online.

To reduce imports, the government is pursuing additional projects, though they also face challenges. As reported by Reuters, Azevedo explained that the planned 100,000 bpd Soyo refinery was under review because of issues with its developer, the US-led Quanten Consortium.

The minister added that construction of the 200,000 bpd Lobito refinery would resume after a full review and “significant cost reduction.” According to the media agency, earlier in 2025, a Sonangol executive said the company was negotiating with Chinese and European banks to close a $4.8bn funding gap for the refinery.