By 2040, up to 60% of the African energy matrix will be fossil fuel driven, says Anibor Kragha, Executive Secretary, African Refiners and Distributors Association, at a “FAMAR-sponsored” panel discussion during the recently concluded Angola Oil & Gas (AOG) conference, thereby highlighting the urgent need for sustained investment in downstream infrastructure across Africa.
While efforts are being made to reduce petroleum imports, Kragha offered three recommendations to expand downstream infrastructure, strengthen regional trade and bolster energy security.
“The first is coordinated, harmonized, regional regulations – it is critical to do this. If you don’t have harmonized regulations, you won’t have harmonized markets. Secondly, you need market-based pricing and products. Lastly, you must focus on infrastructure to minimize supply chain risks. We use trucks but we should be using rails, optimizing ports and such,” Anibor Kragha was quoted as saying.
Orlando Chongo, Head, Coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, was also reported to have emphasized the need to improve access to financing for downstream players. While plans are in place to strengthen infrastructure capacity, capital needs to be made more available.
Meanwhile, in Angola, to support companies seeking investments in the country’s downstream market, the country’s downstream regulator is putting in place the requisite supportive policies. Dr. Luis Fernandes, Director General at the IRDP said that “Today, the regulatory framework allows everyone that wants to be in the market to be involved. We have new rules that are needed to be implemented to reduce greenhouse gas emissions in compliance with climate change policies. We have a legal framework that supports companies achieve this.”
For Sonangol, the national oil company, expanding downstream infrastructure is a top priority. The report adds that the company is prioritizing investments in refining, distribution and port infrastructure so as to strengthen regional trade. Meanwhile three new refining projects are said to be currently under construction, namely the 60,000 barrel per day (BPD) Cabinda project which is billed to start operations this year, the 100,000 BPD Soyo Refinery, and the 200,000 BPD Lobito Refinery.
Other projects include the Barra do Dande Ocean Terminal, which according to Mauro Graça, CEO, Sonangol Distribution and Marketing, “This will not only allow us to be self-sufficient in storage capacity but allow us to fulfil our strategic reserves. With that project, we are not only thinking about Angola, but of the region. With the Cabinda refinery, we will need more storage capacity and to be able to export. We are investing in 24,000 cubic meters in additional storage capacity. We also have a project to make a sea-line, so that larger ships can go to Cabinda to conduct operations.”
Angola’s focus on strengthening its port logistics according to the report, will be instrumental in driving exports – both regionally and internationally. Sara Silva, Legal Compliance Manager at FAMAR, noted that maritime transport is imperative for global trade.
“It is proving to be the most cost-effective manner of transportation, allowing you to transport large volumes of cargo and reducing the cost per unit that you transport. It has the opportunity to connect markets, connecting Africa to the world,” she said.
In the retail sector, efforts are said to be underway to increase the number of retail stations across the country. Óscar Sequesseque, CCO at Pumangol, shared that the company is focused on accelerating Angola’s inland fuel storage capacity. This is aimed at improving access to affordable, locally-sourced fuel products.
Source: APO