Prospects for Autonomy of Angola's Transformation Industry with Growth in Oil Refining, Meeting the Challenges of the World Energy Transition

Abstract

To make the most of oil's energy potential, it must be submitted to a series of refining processes in order to be broken down into its various derivatives. Angola has more than 60 years of oil exploration and still has today, the refinery in Luanda that is of the "hydroskimming" type, whose activity is essentially geared towards producing fuel for the Angolan domestic market and without the capacity to meet the demand of the rapid national economic growth that has evolved over the last 14 years. For this reason, the first quarter of 2019, the Angolan State, via Sonangol, disbursed a gross value of around USD 221.4 million with the import of 397.5 thousand metric tons of oil refined products. Normally, the path most followed by producing countries to leverage the transformation industry is to invest in petrochemical companies to produce most of the products that serve as raw materials that leverage the other industries. However, once again we have refineries to produce the main materials for petrochemicals. On the other hand, the XXI Century poses to human societies this challenge of decarbonisation of the world energy matrix, which, according to the studies we carry out in different research centres around the world, points to the need to modify (revamp) oil refineries, when possible, to increase the production of oil derivatives with non-energy use (petrochemicals, lubricants, fertilizers. ...), process cargoes not based on fossil consumables (e.g. vegetable oils or pyrolysis oil in severe hydrotreatment) and reduce atmospheric emissions from refining processes ^(1). In this sense it is necessary that the alternatives that lead to an autonomy for the growth of the transformation industry, such as the growth of the oil refining activity in Angola (being a producing country for over 60 years), and its extension to petrochemicals, should be adapted to the challenges of the world energy transition. Therefore, this study aims to present the perspectives and impacts of refining in Angola, as well as the suggestion of a refining industry model applicable to the Angolan reality, especially in order to enhance the position of the Angolan refining industry in the challenges of the global energy transition.