Russian firms to build refinery in Angola

Rail Standard Service and Fortland Consulting Company are set to invest USD 12 billion in a 400,000-bopd refinery in Namibe and a rail line linking the central Benguela and southern Moçâmedes railroads, according to an Angolan presidential order issued March 9.

The refinery is expected to ramp up production over 11 years, eventually processing a quarter of the country’s production. 
The presidential order grants the permits and 10 square kilometres of land, and the government has agreed to buy 28,000 bpd of refined products, increasing to 364,000 bpd as production rises.

Facilities to be constructed also include housing for workers, a power plant and a dock, and the project is expected to create 2,100 jobs for locals as well as 900 for expatriates.

The first phase of the project, expected to last three and a half years, includes the construction of a 10-million-tpy electric desalter. The facility will produce petrol, diesel and bitumen.

The companies have set up an investment vehicle for the project, Namref, owned 75% by Rail Standard Service and 25% by Fortland Consulting Company.

Angola has one refinery operating. The Luanda Refinery, constructed in 1955, produces 39,000 bpd at maximum capacity, covering about a fifth of the country’s demand and struggles to steadily produce at maximum capacity, forcing Angola to rely on the import of refined products. Currently the country’s three main rail lines do not connect.