﻿Zambia's and Angola 5 billion dollar pipeline deal
The two southern Africa Nations, Zambia and Angola have signed a 5 billion dollar deal to
build an oil pipeline. The pipeline will just be built by the private sector in collaboration with
the state-owned Angolan petroleum company SANANGOL and the Zambian state corporation
Industrial Development Corporation-IDC Zambia Ltd. According to an announcement by Zambian government
officials, the project will pave the way for a pipeline to supply finished petroleum products
from oil-rich Angola to Zambia when completed. Welcome to THINKRICH MEDIA the community which
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During development, the project is planned to employ between 12,500 and 14,500 locals
in Angola and Zambia. Once completed, the pipeline will produce 100,000 to
120,000 barrels per day of refined petroleum products through hubs in Angola and Zambia.
On April 29 at the signing ceremony in Luanda, the Zambian government was represented by energy
Minister Matthew Nkhuwa with Angola represented by petroleum minister Diamantino Pedro Azevedo.
According to Minister Matthew Nkhuwa, the pipeline system will also include a gas pipeline that will
deliver natural gas to combined cycle gas turbine facilities in Angola and Zambia,
producing a minimum of 2000 Megawatts of energy for the Angolan and Zambian electricity markets.
The feasibility studies could take two years, according to Angola's Minister of Petroleum,
Diamantino Azevedo. Nkhuwa stated that Zambia had been working for ten years to sign the MoU with
Angola. He said that the act will enhance ties between two countries and peoples,
boost regional trade, ease resource exchange between Angola and Zambia,
and create jobs in both countries. Following completion,
the two governments will make the ultimate decision on pipeline construction,
according to Angola's Ministry of Petroleum in a statement issued after the agreement was
signed. If the project is built, it will generate between 12,000 and 14,000 jobs in both countries,
while pipeline maintenance and operation will generate 4,000 permanent jobs in Angola
and Zambia, according to the Angolan Ministry of Petroleum. Once finished,
the pipes are expected to transmit gasoline, fuel, kerosene, and gas from Angola to Zambia.
Sonangol, the national oil company of Angola, and IDC, the state corporation of Zambia,
will be strategic equity partners in the pipeline project, according to Zambia's
ambassador to Angola Lawrence Chalungumana, as stated by The Zambian Observer.
According to The Zambian Observer, Angola is currently increasing its refining capacity
by building three refineries with a total capacity of 400,000 barrels per day (bpd) and tripling the
refinery capacity of an operational refinery. All of the new refining capacity will turn OPEC
member Angola into a producer of more refined oil products than it consumes. The excess fuel will be
shipped to Zambia and other bordering countries in the region. Zambia depends on copper for a
substantial portion of its export profits, yet it imports fuel. According to the ambassador,
the project will be completed in 2025. The Zambian minister had visited the
Barra do Dande terminal prior to signing the MoU. Following an interruption in 2017,
Sonangol chairman Sebastio Martins said that development on the terminal would be restarted.
The Angola-Zambia pipeline will be served by both the terminal and the Lobito refinery.
According to Martins, the facility will "keep refined products for internal
distribution and for the Lobito terminal, which will flow from there to Zambia."
Early 2021, Sonangol issued a tender for engineering, procurement, construction,
and commissioning (EPCC) work on Barra do Dande. The company also solicited bids for financing.
Angola is currently constructing a number of new refineries.
The country awarded Quanten of the United States a build, own, and operate (BOO) contract for the
Soyo refinery in March 2021. The refinery, which will have a capacity of 100,000 barrels per day,
will cost $3.5 billion. According to the Sonangol executive, a storage tank
on a dusty field with scaffoldingBarra do Dande should be completed by end of 2022.
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