Chinese company will construct significant oil refinery in Angola – Bloomberg

According to reports, the African nation would sign a $6 billion contract with China National Chemical Engineering.

According to Bloomberg on Friday, Angola and China National Chemical Engineering Co. (CNCEC) are about to sign a deal for the construction of a long-delayed oil processing plant in the town of Lobito.

After a meeting between Angola’s President Joao Lourenco and CNCEC Chairman Wen Gang, Diamantino Azevedo, minister of minerals and petroleum, declared that the refinery’s processing capacity remained at 200,000 barrels per day and that the investment’s anticipated cost was about $6 billion.

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In August 2016, Sonagol, the state-owned oil corporation of Angola, put a stop to the building of the Lobito crude processing plant. The business declared in November 2017 that it was looking for investors in order to restart construction. According to the company’s statement at the time, private investors will control 30% of the plant’s shares and Sonagol will hold the remaining 70%.

The Lobito refinery, which is expected to become one of the most important infrastructure projects in Angola’s energy sector, will be built and financed under the terms of the deal by China’s CNCEC.

Once constructed, the processing facility will make the nation of Southern Africa self-sufficient in refined fuels like petrol, diesel and liquefied petroleum gas. The refinery will also allow Angola to export fuel and supply fuel to its neighbours.