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Zambia eyes fuel imports from neighbouring Angola

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Zambia plans to import fuel from its oil-producing neighbour Angola in the government’s push to lower pump prices and stem supply shocks.

Zambia has agreed to buy a stake in Angola’s Lobito refinery in Benguela Province along the Atlantic Coast.

President Hakainde Hichilema, during his three-day visit to Angola, assured his host that his country would invest in the Lobito refinery that is under construction.

“It makes no sense to import fuel from other parts of the world when we have a neighbouring producer,” President Hichilema told journalists at a press conference in the capital Luanda after a meeting with President João Lourenço.

“I don’t know how we have managed to maintain this situation of buying fuel from Saudi Arabia and other parts of the world and not from our neighbour,” he added.

President Hichilema arrived in Luanda Tuesday and visited the refinery in Benguela on Thursday and the Lobito corridor, consisting of railroad and port, offering the shortest route linking Zambia and the Democratic Republic of Congo’s key mining regions to the Atlantic Coast.

In July, the Angola government signed a 30-year concession with a consortium of Trafigura, Mota-Engil Engineering and Construction Africa, and Vecturis, Belgium, to operate rail services and offer logistical support for the Lobito corridor.

The rail line runs approximately 1290km from Luau on the eastern border with DRC to the Lobito Port on the Atlantic.

Angola and Zambia are also conducting a feasibility study for a proposed oil pipeline from the Lobito refinery to Lusaka.

President Lourenço said the refinery construction is expected to be concluded in 2026.

“It is very natural that Zambia, as our neighbour, has a great interest in acquiring these fuels in Angola, in the neighbouring country, especially when Angola has a greater capacity to refine the crude oil it extracts,” President Lourenço said.

The refinery is projected to process up to 200,000 barrels per day when completed.

According to a proposed governance structure, private investors, including Zambia, will own 70 percent of the refinery, with Angola state oil firm Sonangol controlling a 30 percent stake.

17 COMMENTS

    • William Banda I only hope when the deal blows in your face you won’t be accusing PF? No malice meant… just wondering

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    • Angolan oil isn’t owned by the Angolan government just like Zambian copper. The same big players like Total Energy determine the price of oil. It’s like Angola dreaming to buy cheap copper from Zambia. As for the investment that HH intends to stake in Angola, it’s better to subject it to further debate because we have witnessed such deals before. Under KK Zambia built the Port facility at Dar es Salaam but we haven’t benefited from those massive investments. What guarantee is there that Zambia shall accrue any dividends from that?

  1. Just hope that like the Zesco fiasco there won’t be pointing fingers at each other and people voluntarily getting the blame…..in short there appears to be no due diligence…. like the old wild West he’s not shooting from the hips.

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    • Like Lazy Lungu who used to go to Angola to dance and drink…UK must be very frustrating for the Troll/Impostor at the moment

  2. HH will get Kavindele very excited I dont know how many times he has been excited by this pronuncements of a railway line…as for the fuel we heard this before there was talk of importing by products like engine oil, Korosene etc but nothing came to fruitation as it was either poor quality or didnt make the grade. I hope he wont fly to Lusaka only for the technocrats to show him agreement contracts the govt has signed with oil companies in Zambia like BP and others that its not possible.

    • Here is an older LT story:
      Zambia to start importing fuel from Angola
      January 4, 2012
      Zambia plans to start importing refined petroleum products from neighbouring Angola to lower the cost of fuel.
      Energy permanent secretary George Zulu has told Reuters that oil-rich Angola was willing to supply Zambia with petroleum, which the country has been importing from the Middle East.
      Mr Zulu says a technical team led by the minister of energy will travel to Angola next week to discuss the details of importing finished petroleum products.

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    • Why haven’t anyone from this area been using the Angola oil all this time… meaning all these Presidents in the sadc region are dull? But the new kid in town has done it? Just asking…no malice

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