By DAYO ADESULU
- 2040 Vision: Fossil Fuels to Dominate Africa’s Energy Matrix
LUANDA, Angola, October 7, 2024 — Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association, revealed at the Angola Oil & Gas (AOG) conference that by 2040, fossil fuels will account for up to 60% of Africa’s energy matrix. This statistic underscores the urgent need for substantial investment in downstream infrastructure to enhance energy security and regional trade.
- Key Recommendations for Downstream Infrastructure Development
During a panel discussion sponsored by FAMAR, Kragha emphasized three critical recommendations for expanding downstream infrastructure:
1. **Coordinated Regional Regulations**: Harmonizing regulations across the region is essential for creating unified markets.
2. **Market-Based Pricing and Products**: Establishing pricing mechanisms that reflect market dynamics is crucial for a competitive landscape.
3. **Infrastructure Optimization**: Minimizing supply chain risks requires a shift from reliance on trucks to utilizing railways and enhancing port facilities.
- Financing Challenges and Solutions for Downstream Stakeholders
Orlando Chongo, Head of Coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, highlighted the importance of improving access to financing for downstream operators. While infrastructure enhancement plans are underway, securing capital remains a significant challenge.
- Angola’s Commitment to Supporting Downstream Investments
In response to growing investment interest in Angola’s downstream market, the country’s regulatory body is implementing supportive policies. Dr. Luis Fernandes, Director General at the IRDP, stated, “The regulatory framework now encourages market participation while aligning with climate change policies through new rules aimed at reducing greenhouse gas emissions.”
- Sonangol’s Ambitious Downstream Expansion Plans
For Angola’s national oil company, Sonangol, enhancing downstream infrastructure is a priority. The company is investing in refining and distribution capabilities, with three significant refinery projects underway: the 60,000 barrel per day (BPD) Cabinda project, the 100,000 BPD Soyo Refinery, and the 200,000 BPD Lobito Refinery.
Mauro Graça, CEO of Sonangol Distribution and Marketing, commented on the Barra do Dande Ocean Terminal project, emphasizing its potential to bolster storage capacity and regional trade: “We are investing in additional storage to support our strategic reserves and enhance export capabilities.”
- Enhancing Port Logistics for Global Trade
Angola’s strategic focus on improving port logistics is vital for boosting exports, both regionally and internationally. Sara Silva, Legal Compliance Manager at FAMAR, asserted that maritime transport is a key driver for global trade, providing a cost-effective solution for transporting large volumes of cargo and connecting Africa to the world.
- Retail Sector Growth: Increasing Accessibility to Fuel Products
In the retail domain, efforts are being made to expand the number of fuel stations across Angola. Óscar Sequesseque, CCO at Pumangol, emphasized the company’s commitment to enhancing inland fuel storage capacity to ensure that affordable, locally-sourced fuel products are accessible to all Angolans.
By prioritizing investment in downstream infrastructure, Angola is poised to strengthen its energy sector, enhance regional trade, and support sustainable development in alignment with global climate goals.