Angola’s Cabinda refinery begins fuel shipments amid global supply strain

As global fuel prices remain elevated and supply chains continue to face pressure from geopolitical tensions, Africa’s refining push is gaining ground. A new development in Angola is adding to that shift, as the Cabinda oil refinery begins shipping fuel to local and international markets, offering relief for a region that still depends heavily on imported refined products.

Cabinda plant signals early operations

The refinery, built at a cost of more than $470 million, has started supplying diesel domestically while exporting heavy fuel oil and naphtha to overseas buyers. Operated by Gemcorp Capital LLP, which holds a 90 percent stake, the facility is one of the few new refineries built on the continent in decades. During a visit to Cabinda province, a flame from the plant’s flare tower signaled early-stage operations at a site in Angola’s oil-producing region of Cabinda province. 

Atanas Bostandjiev, founder and CEO of Gemcorp, said the project was designed with a straightforward aim: improving Angola’s energy security. He said recent disruptions in global oil flows, driven in part by conflict in the Middle East, have reinforced that original goal. “What we’re seeing now has validated the thinking behind this investment,” he said. The London-based firm took control of the project about six years ago and is already preparing for an expansion that would double capacity to 60,000 barrels per day at an estimated cost of $700 million.

Cabinda refinery expands phased capacity

Although small compared to global standards, the Cabinda refinery carries weight locally. It is the first refinery built in Angola since independence in 1975 and currently meets roughly 10 percent of domestic fuel demand. A second phase would significantly increase that share, with Gemcorp aiming to reach financial close this year. The company is also exploring a third phase and possible development of a petrochemicals facility on the same site.

Across Africa, the numbers highlight the scale of dependence on imported fuel. The continent exports about three-quarters of its crude oil but imports roughly 70 percent of refined products, according to the African Petroleum Producers’ Organisation. That imbalance costs African economies an estimated $50 billion each year, driven by shipping, refining, and price premiums paid abroad. Angola’s state oil company, Sonangol, is also working on additional refineries in Lobito and Soyo, alongside its existing facility in Luanda.

Energy prices rise across Africa

The Cabinda start-up comes at a time when supply shocks are being felt more widely. Conflicts in the Middle East have tightened global oil flows, pushing prices higher and limiting availability for import-dependent economies. At the same time, Nigeria’s Dangote Refinery, with capacity of 650,000 barrels per day, has begun shipping gasoline across Africa, helping stabilize regional supply. The facility also produces about 3 million metric tons of urea annually, part of which is now being redirected to African buyers as global routes remain uneven.

The pressure is visible in retail markets, with fuel prices in South Africa rising significantly this year and shortages persisting Kenya and Somalia. In South Africa, diesel costs strained farmers, and Egypt has adjusted electricity tariffs for high-use consumers. Brent crude trades above $100 per barrel, reflecting uncertainty in supply routes, risks around the Strait of Hormuz. Even if diplomatic efforts ease tensions, expect delays before supply chains stabilize. New refining capacity in Africa is helping ease shortages and keep fuel closer to demand.