Angola has opened a new fuel terminal that will increase its onshore storage capacity of petrol, diesel and other refined petroleum products by around 80%.

Located in Angola’s Bengo Province, the $642mn facility was inaugurated on February 10 by its owner – state-run oil company Sonangol – and is expected to have an initial storage capacity of 580,000 cubic metres. Construction of the project was carried out by Brazilian firm Odebrecht Engineering and Construction.

Prior to the new infrastructure being brought online, Angola’s Petroleum Derivatives Regulatory Institute reported that the country’s onshore fuel storage capacity lay at 676,968 cubic metres. Fuel storage infrastructure remains important to the country, as it continues to rely on imports despite being one of Africa’s largest producers of crude oil. Currently, around 70% of the country’s fuel supply comes from abroad, according to Xinhua.

The emergence of a brand-new terminal also coincides with Angola’s goals to develop its domestic capabilities. In August 2024, the country announced that three of its new refineries – expected to increase the country’s refining capacity to 400,000 barrels per day (bpd) – were nearing completion and were expected to start operations in 2025.

The refineries in question include the 60,000 bpd Cabinda, 200,000 bpd Lobito and 150,000 bpd Soyo facilities.

The country’s only existing refinery at Luanda at 65,000 bpd is also currently receiving upgrades which were initially announced in 2022 – featuring the addition of a production unit which will increase the plant’s production to around 260,000 bpd.

Angola’s push to grow its domestic refining sector stems from a goal to improve its overall energy security and decrease over-reliance on imported fuels – issues that other African countries such as Nigeria and South Africa have also been grappling with in recent times.

This has driven a desire to both construct and rehabilitate plants and other oil infrastructure, with sub-Saharan Africa’s refining sector beginning to see a resurgence thanks to renewed interest – despite the continent’s refinery throughput dropping to 365,000 bpd in the third quarter of 2023 overall.

Angola’s decision to press ahead with the construction of a new terminal and domestic refineries mirrors Africa’s overall reaction to a significant increase of oil product imports over the past 10 years – an increase that has been placed at 60%.