The Lobito refinery, designed for 200,000 barrels per day, is around 27% complete, Edson Pongolola, Sonangol's director of planning and management, said at African Energy Week 2026. The facility is being developed with Chinese company CMT3 and is expected to enter service in the coming years. For Angola, this project is central to a strategy to reduce imports of refined products and create domestic processing capacity.
The announcement updates progress on construction, but physical completion alone does not indicate final costs, the commissioning schedule or the volumes that will actually be produced. Refineries are complex projects comprising processing units, storage, power supply and port logistics. The remaining phase will require financing, equipment, testing and phased commissioning.
A strategic project facing growing demand
Angola consumes around 5.5 million tonnes of petroleum products annually, according to data presented by Sonangol. Demand is growing by nearly 5% a year and could reach 7 million tonnes over the next four to five years. Consumption growth, linked to economic activity, transport and urbanisation, makes security of supply particularly important.
The Lobito refinery is intended to increase the share of products processed locally. With a nameplate capacity of 200,000 barrels per day, it could produce a wide range of fuels if facilities are completed as planned and crude supply is secured. Angola has significant oil production, but the allocation of crude between exports, domestic consumption and refining will depend on contracts and the project's economics.
Sonangol says it has already upgraded gasoline processing units at the Luanda refinery, increasing their capacity to four times the 2019 level. The facilities concerned entered service in 2022. The group is also pursuing the second phase of the Cabinda project. Alongside Luanda and Lobito, these assets can contribute to more diversified domestic capacity and a supply less dependent on imports.
Installed capacity does not guarantee self-sufficiency
The import-substitution objective will depend on the types of products each refinery can supply, utilisation rates and access to feedstock. A unit can have substantial nameplate capacity but operate below that level if construction is delayed, technical shutdowns are frequent or supply is irregular. Energy self-sufficiency requires a complete chain, from crude supply to transporting products to markets.
The experience of other African refineries shows that reliable operation and maintenance are as important as construction. Facilities must have technical skills, spare parts and supply contracts. Products must also meet consumers' specifications and be competitive against imports. Financing costs, refining margins and selling prices influence commercial viability.
Angola currently consumes refined products sourced from abroad and seeks greater security of supply. Developing local capacity can reduce logistical lead times and retain a larger share of value. However, a refinery alone does not guarantee lower prices. Crude costs, taxes, exchange rates, distribution and tariffs remain decisive components for consumers.
A regional opportunity to structure
The Lobito project can also serve neighbouring markets, depending on export capacity, transport conditions and regional demand trends. Africa still exports a large share of its crude oil to be refined elsewhere. Developing local facilities could reduce this dependence and create industrial chains around storage, distribution, petrochemicals and services.
Regional marketing will nevertheless require sales agreements, logistical connections and compatible standards. The port and transport networks must be able to deliver products to the intended destinations. Neighbouring states will compare the cost of Lobito's products with those of other suppliers, making competitiveness essential.
Across the continent, the African Refiners and Distributors Association notes that nearly 70% of African oil is exported for processing. This dependence represents potential for value creation, but refinery development must account for energy transitions and long-term changes in demand. Investments should be flexible enough to serve several markets and incorporate quality and efficiency objectives.
Milestones to monitor through commissioning
Construction at Lobito will need to progress through building, unit integration, commissioning and ramp-up. Regular publication of progress, spending, contract and schedule data will help assess the project. Completion figures can vary with the calculation method; distinguishing physical work, the proportion of equipment delivered and amounts actually invested will be useful.
The refinery can reduce Angola's dependence on imports and increase domestic market resilience. Its success will nevertheless depend on full financing, construction quality and reliable operation. The country will also need to manage crude requirements, operating costs and market access.
At AEW, Sonangol placed Lobito's progress within a broader strategy to develop domestic capacity. Construction is advancing, but the decisive stage will be completion and then commercial performance. Actual production volumes, imports avoided and value retained in the economy will measure the investment's contribution.