Angolan Gas to Boost Agriculture Yield
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The Angola Oil & Gas (AOG) conference – taking place September 3-4 in Luanda – will unpack the strategic value of investing in the country’s natural gas value chain. By uniting upstream, midstream and downstream players, the event offers a unique platform to discuss cross-sector value addition, tackling key topics such as power generation, fertilizer production, integration and finance opportunities.
A Focus on Fertilizer Production
Angola currently imports approximately $120 million worth of fertilizer annually to meet local demand. However, upcoming projects are expected to reduce imports by leveraging gas to produce ammonia and urea. Recent developments include Japanese engineering, procurement and construction company Toyo Engineering Corporation partnering with Angolan fertilizer producer Amufert in February 2025 to license its proprietary urea technology for the Soyo urea plant. The plant will have a capacity of 4,000 tons per day, producing fertilizer for the domestic market. Multilateral financial institution the African Export-Import Bank committed $1.4 billion to the project in 2024, and with all the preliminary phases completed, operations are set to start in 2027. Through the local production facility, Angola will enhance agricultural productivity, supporting farmers with a reliable source of fertilizer.
Natural Gas: A Fuel for Agri-Operations
Beyond fertilizer production, natural gas is expected to enhance access to reliable fuels in Angola. The country’s agriculture industry currently relies heavily on biomass and diesel to sustain operations. However, strengthened distribution of natural gas products such as LPG could support agro-processes. Angola is already stepping up its LPG distribution. In Q4, 2024, 1.3 million tons of LPG acquired for the domestic market. Q1, 2024 saw a 15% increase in LPG distribution compared to the previous quarter, with LPG demand projected to increase 31% by 2027. Angolan national oil company Sonangol has also increased its gas-filling capacity in Cabinda, tripling capacity from 3,000 12-kg gas cylinders per day to 9,000 cylinders in 2024. This will increase regional gas availability by 28%, thereby supporting fuel security across the agriculture sector.
Upcoming Projects to Support Output
Upcoming gas projects are expected to bolster operations across the agriculture industry. The 750 MW Soyo II combined-cycle power plant is expected to become operational in 2025, increasing the country’s electricity access by 20%. Angola’s first non-associated gas project – comprising the Quiluma and Maboqueiro fields – is also advancing, with the New Gas Consortium completing the offshore platforms in February 2025. With a capacity of 330 million standard cubic feet per day (mmscf/d), the project will offer feedstock for the Angola LNG project, thereby increasing output. Six months ahead of schedule, operations are on track for early-2026. The Angola LNG project already received a boost in December 2024 when the Sanha Lean Gas Connection project also achieved first gas. The first phase will deliver 80 mmscf/d to the plant, increasing output by 220 mmscf/d in the second phase. By increasing gas production, Angola is introducing greater energy supplies to support the agriculture sector, from powering machinery to fueling irrigation systems and food processing facilities. Fuel will also support transportation and storage of agricultural products, strengthening food security in line with the NDP.
AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact [email protected].