Recently, OPEC released a report in which it predicts that Africa’s potential refining capacity is expected to start increasing in 2022, to just under 400,000 barrels per day, before reaching just over one million barrels per day in 2026.
Organization of the Petroleum Exporting Countries (OPEC) Secretary General Mohamed Barkindo said the cartel will invest $ 450 billion in the refining segment in developing countries. The announcement was made during his speech on November 9 at African Energy Week in Cape Town.
The leader assures that Africa will get a significant share of this envelope.
According to Barkindo, the $ 450 billion is part of a global package of $ 1.5 million the organization plans to inject into the downstream sector of the oil and gas industry by 2045.
“Of this amount, $ 450 billion will be invested in projects for new refineries and expansion of existing units. Most of these projects will be located in developing countries, especially in Africa, ”he explained.
According to The Economic Confidential, last year’s oil demand shock caused by the Covid-19 pandemic has resulted in numerous refinery closures around the world. The cartel’s investment plan aims to stabilize the downstream market in the future.