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Sonangol cancels contract with United Shine to build the Cabinda refinery

Sonangol of Angola recently announced that it terminated its contract with United Shine of Hong Kong for the construction of the company’s planned Cabinda high conversion refinery. Sonangol claims the termination is due to United Shine’s failure, “to submit additional technical, commercial and financial studies to support the project’s completion … and shortcoming in corporate capitalization.”

Sonangol is striving to stay on schedule for the Cabinda project as it has recently signed a memorandum of understanding with Gemcorp Capital of London to finance and implement this project, which is expected to have a capacity of 60,000 barrels per day with an anticipated start date of 2022.

The arrival of this project is very important for Angola, as the country has recently suffered through some of its worst fuel shortages in years during 2019.  The country currently imports approximately 80% of its refined products.

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From the April 2018 issue of Hydrocarbon Processing


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