LAGOS – By 2040, up to 60% of the African energy matrix will be fossil fuel driven, according to Anibor Kragha, executive secretary of the African Refiners and Distributors Association.
He stated this while addressing a FAMAR-sponsored panel discussion during the Angola Oil & Gas (AOG) conference last week.
This forecast highlights, Kragha said, is a fundamental need to invest more heavily in downstream infrastructure.
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 co-ordinated, harmonised regional regulations, it is critical to do this. If you don’t have harmonised regulations, you won’t have harmonised markets.
“Secondly, you need market-based pricing and products,” he added.
“Lastly, you must focus on infrastructure to minimise supply chain risks. We use trucks but we should be using rails, optimizing ports and such.”
Orlando Chongo, head: coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, emphasised 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.
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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: “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 the national oil company Sonangol, expanding downstream infrastructure is a top priority. The company is prioritising investments in refining, distribution and port infrastructure to strengthen regional trade.
Three new refining projects are currently under construction: namely the 60 000 barrel per day (BPD) Cabinda project, starting operations this year; the 100 000 BPD Soyo Refinery; and the 200 000 BPD Lobito Refinery.
Another projects is the Barra do Dande Ocean Terminal. “This will not only allow us to be self-sufficient in storage capacity but allow us to fulfil our strategic reserves,” says Mauro Graça, CEO of Sonangol Distribution and Marketing.
“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 metres 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 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 underway to increase the number of retail stations across the country. Óscar Sequesseque, chief commercial officer at Pumangol, shared that the company is focused on accelerating Angola’s inland fuel storage capacity. This way, Angola aims to improve access to affordable, locally-sourced fuel products.
