BY 2040, up to 60 percent of Africa’s energy supply will still be driven by fossil fuels, according to Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association. Speaking at the recent Angola Oil & Gas (AOG) conference, Kragha emphasised the need for significant investment in downstream infrastructure to ensure energy security and regional trade.
Kragha offered three key recommendations for enhancing Africa’s downstream energy sector: harmonised regional regulations, market-based pricing, and a focus on infrastructure. ‘Without harmonised regulations, we won’t have harmonised markets. We also need to shift away from using trucks for transportation and focus on railways and optimising ports to minimise supply chain risks,’ he said.
Infrastructure investment and financing
Orlando Chongo, Head of Coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, pointed out the critical need for improved access to financing to support downstream infrastructure projects. Angola’s government, through its downstream regulator, is introducing policies to encourage investments while ensuring compliance with climate change regulations.
Luis Fernandes, Director General at Angola’s downstream regulator IRDP, highlighted new rules aimed at reducing greenhouse gas emissions. ‘Our legal framework supports companies looking to invest in the sector while helping them meet climate goals,’ he noted.
Angola’s refinery projects and expansion plans
Sonangol, Angola’s national oil company, has prioritised investments in refining, distribution, and port infrastructure. Three key refinery projects are under development: the 60,000 barrels per day (bpd) Cabinda refinery, the 100,000 bpd Soyo refinery, and the 200,000 bpd Lobito refinery. These projects are expected to enhance Angola’s refining capacity and boost regional trade.
In addition, Sonangol is investing in the Barra do Dande Ocean Terminal, which will expand storage capacity and improve export capabilities. Mauro Graça, CEO of Sonangol Distribution and Marketing, said: ‘With more storage capacity, we can focus not only on Angola but the wider region, increasing exports and fulfilling strategic reserves.’
Importance of maritime logistics
Angola is also strengthening its port logistics to enhance international trade. Sara Silva, Legal Compliance Manager at FAMAR, highlighted the importance of maritime transport for global trade, noting its cost-effectiveness and ability to connect Africa with international markets.
In the retail sector, companies like Pumangol are expanding inland fuel storage and increasing the number of fuel stations, aiming to provide affordable, locally sourced fuel to Angolan consumers. Óscar Sequesseque, CCO at Pumangol, outlined plans to accelerate the country’s inland fuel storage capacity to meet growing demand.
With these ambitious projects, Angola is positioning itself as a key player in Africa’s energy future, focusing on enhancing infrastructure, boosting trade, and ensuring energy security both regionally and internationally.
Credit: Africabriefing
