ANGOLA STEPS UP: ENERGY INVESTMENTS DRIVE MOMENTUM & DEMAND FOR STAINLESS STEEL
Angola is undergoing a major transformation, positioning itself as a rising force in Southern Africa through bold investments in its energy sector. Strategically located on the Atlantic coast and bordering Namibia, Congo, and Zambia, Angola holds a vital geopolitical position that enhances its regional influence. Despite facing deep rooted socio-economic challenges, including widespread poverty, stark income inequality and high inflation, the country is pressing ahead with efforts to strengthen energy independence and diversify its economy…
Angola’s Economic Backbone: Oil and Gas
Angola’s economy is heavily reliant on oil production, which accounts for the largest share of its GDP and export revenues. Its main exports, crude oil, refined petroleum, natural gas, and diamonds, reflect a commodity-dependent structure. The country exports the bulk of its crude oil while importing most of its refined petroleum products. This import-reliant model has historically made Angola vulnerable to external shocks and global oil price fluctuations.
However, recent energy infrastructure projects suggest a deliberate push to change that model. By building domestic refining and gas processing capacity, Angola aims to keep more value within its borders while reducing dependence on imports. This shift brings with it a surge in demand for stainless steel which is critical to the infrastructure of these industries due to its corrosion resistance, durability, and ability to perform under extreme conditions.
Cabinda Oil Refinery: A Strategic Leap Toward Energy Independence
The Cabinda Oil Refinery Project is one of the most critical undertakings in Angola’s energy transformation. Having begun operations in April 2025, the refinery is a joint venture between Gemcorp Holdings Limited and Angola’s national oil company, Sonangol.
The refinery’s first phase includes a crude distillation unit capable of processing 30 000 barrels of Cabinda crude oil per day. This would meet 5% to 10% of Angola’s domestic fuel demand and marks a significant milestone, given that Angola currently imports most of its refined fuels.
Despite pandemic-induced delays and budget overruns driven by inflation, the project has moved ahead of schedule. Commissioning is planned for early 2025, with refined products expected to reach the local markets shortly thereafter. Once operational, the refinery will strengthen Angola’s energy security, reduce foreign currency outflows, and create local jobs.
Crucially for Sassda members, the construction and long-term operation of this refinery involves a wide range of stainless steel applications, ranging from storage tanks and heat exchangers to pressure vessels, piping, and fittings. The harsh process conditions and exposure to chemicals also make stainless steel indispensable in this type of refining environment.
Non-Associated Gas: Quiluma and Maboqueiro Fields Signal New Chapter
In line with its refining ambitions, Angola is embarking on a pioneering gas project. The Quiluma and Maboqueiro fields, managed by the New Gas Consortium (NGC), are expected to commence production by late 2025 or early 2026. With a projected total investment of USD 2.4-Billion, the project is Angola’s first non-associated gas development and a crucial step for the economy to diversify beyond oil.
Azule Energy, a joint venture between Eni and BP, is spearheading the initiative in collaboration with Sonangol E&P, Chevron, and TotalEnergies. Operating in the country’s shallow offshore waters, the project will produce over 330 million cubic feet of gas per day at peak output.
This high-spec, safety-critical operation demands materials with superior resistance to corrosion, stress cracking, and high-pressure conditions all of which are traits that stainless steel delivers in abundance. Stainless components will be essential in gas processing units, subsea systems, LNG transfer lines, and cryogenic storage, offering Sassda members multiple entry points.
Over 2.5 million hours have already been logged on the project with zero lost-time injuries which is a testament to both engineering precision and workforce safety. Once online, this gas project will support Angola’s energy transition, boost local power generation, and lay the groundwork for potential exports.
Begonia Oil Field: Boosting Subsea Output
TotalEnergies is leading another key offshore initiative with the Begonia oil field development in Block 17/06. Having added 30 000 barrels per day to Angola’s production by late 2024, the project is structured as a subsea tieback to the existing Pazflor FPSO (floating production, storage, and offloading vessel).
The subsea installation will involve five wells - three for production and two for water injection - connected via a 20km-long multiphase pipeline. This configuration is not only efficient but cost-effective, leveraging existing infrastructure to maximise return on investment.
Subsea oil production, especially in corrosive saltwater environments, depends heavily on stainless steel grades such as duplex and super duplex for flowlines, control systems, and connectors. For Sassda members involved in marine and offshore applications, the Begonia field offers a compelling
case for specialised fabrication and supply.
Outlook: Turning Projects into Progress
Overall, these developments suggest Angola is not standing still but rather strategically investing in infrastructure to extract greater value from its natural resources. The Cabinda Refinery is a bold move toward domestic energy security, while the gas consortium opens a new chapter for Angola’s
energy mix and the Begonia subsea project strengthens offshore production without massive new overheads.
Together, they reflect a coordinated effort to modernise Angola’s energy sector and make it more resilient. These investments also carry downstream benefits: a more stable fuel supply, job creation, local skills development, and potentially even export opportunities for refined products or LNG in the future.
For stainless steel producers, fabricators, and suppliers in the Southern African region, these projects represent a growing market with long-term potential. From high-spec alloy materials to structural and modular components, stainless steel is a backbone of this industrial expansion.
Key Outtakes…
Angola is at a pivotal moment. It has the natural resources, the ambition, and now, the infrastructure projects that could fundamentally shift its economic trajectory. These strategic developments are about more than just energy; they are laying the foundation for a modern industrial economy.
For Sassda members, this means opportunity. The projects in Angola are already shaping up to be stainless-intensive, with applications spanning oil, gas, chemical processing, and offshore engineering. With the right strategy and partnerships, the stainless steel sector in Southern Africa can become a key enabler of Angola’s transformation and grow with it.
Source: Africa House www.africainfo.co.za