Africa Oil Refining Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Oil Refining Market Analysis
The African oil refining market is expected to register a CAGR of around 2.5% during the forecast period. The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.
Over the short term, the African oil refining market is expected to grow due to the increasing investments in developing countries, such as Nigeria, Algeria, Tunisia, and Angola. On the other hand, the rising fuel prices in the region can hinder the growth of the market studied in the coming years.
Nevertheless, the high LPG demand in many African countries creates ample opportunities for the market. In many parts of West Africa, a huge population uses pollutive fuels, such as biomass, firewood, charcoal, etc., for cooking and lighting. In Ghana, more than 60% of total energy consumption comes from biomass and dirty sources, as many people are deprived of clean fuels, such as LPG. Egypt is expected to dominate the market due to the government's efforts to develop the refining sector of the country.
Africa Oil Refining Market Trends
This section covers the major market trends shaping the Africa Oil Refining Market according to our research experts:
Egypt Expected to Dominate the Market
Egypt is the biggest oil refiner in Africa, with 12 refineries and more than ten refining companies. The major refineries include Middle-East Oil Refinery (MIDOR) and the Cairo Oil Refining Company (CORC). The country's refining sector has flourished a lot in the last two decades due to the government's efforts to develop the sector and private investments.
The refinery throughput of the country in 2021 was around 591 thousand barrels per day. The output is still less compared to the constantly increasing fuel demand. Thus, the Egyptian government has planned many greenfield and brownfield refining projects to accelerate the domestic refining capacity in the coming years.
For example, in August 2022, the ATB Riva Calzoni company completed the cargo delivery for the upgradation of Assuit Refinery, the project currently under development. The upgradation project, with the EPC contractor as TechnipFMC, includes the construction of a hydrocracking complex, vacuum distillation unit, and coker unit in the refinery for the transformation of low-value petroleum products into around 2.8 million tons of cleaner products, such as Euro V Diesel.
In addition, there is an ongoing project for constructing a gas oil complex to convert low-value fuel oil into high-value distillates, such as high-value gas oil, LPG, and many other products with high quantities. The USD 2.9 billion project is expected to be completed in 2023.
Such developments are expected to help Egypt acquire the highest share in the oil refining sector in Africa.
Growing Investments in Developing Countries Expected to Drive the Market
The region has witnessed a noticeable growth in the investments made in the oil and gas sector of developing countries, such as Nigeria, Algeria, Angola, etc. For instance, the Nigerian oil and gas refining sector is expected to get accelerated by investments by independent energy companies due to the government's plans to have a majority shareholding of private companies, even in state-owned refineries, in the coming years. They hinted at attracting new investments.
The country's refining sector witnessed an extreme decline recently due to productivity issues caused by poor infrastructure. The four public-sector refineries can collectively process 445,000 barrels of crude oil daily, but they ran at around 2.5% combined average utilization rate in 2019. This caused the oil refinery throughput of the country to slide down to 3 thousand barrels per day in 2021. These issues demanded new investments to help the refining sector. There were about 23 valid licenses pending approval as new refinery proposals as of 2021.
For example, a new ammonia and methanol production plant is being developed in Nigeria by Brass Fertilizer & Petrochemical Company, a project with a capacity of 1.70 million tonnes per annum (mtpa). The new plant is expected to start operations by 2025.
Furthermore, the other most awaited refinery is the new refining and petrochemicals complex constructed by BUA group in the Nigerian state of Akwa Ibom. The complex is expected to add a refining capacity of 200,000 barrels per day once operational in 2024. The products to be manufactured include high-quality gasoline, diesel, and jet fuel, meeting the Euro-V specifications.
Due to such interest from private companies in the Nigerian refining sector, the African oil refining market is expected to grow in the coming years.
Africa Oil Refining Industry Overview
The African oil refining market is fragmented. Some of the key players in the market (in no particular order) are Egyptian Refining Company (ERC), Nigerian National Petroleum Corporation (NNPC), KBR Inc., Midoil Refining and Petrochemicals Company Ltd, and Engen Petroleum Ltd.
Africa Oil Refining Market Leaders
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Egyptian Refining Company (ERC)
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Nigerian National Petroleum Corporation (NNPC)
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KBR Inc.
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Midoil Refining & Petrochemicals Company Ltd.
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Engen Petroleum Ltd.
*Disclaimer: Major Players sorted in no particular order
Africa Oil Refining Market News
- November 2021: The Dangote group announced that they are likely to commission the Dangote refinery in 2022. The 650,000 b/d refinery is located in Lagos, Nigeria. It is believed to be Africa's largest upcoming integrated refinery and the world's biggest single-train facility.
Africa Oil Refining Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in million barrels per day, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Geography
5.1.1 Nigeria
5.1.2 Algeria
5.1.3 Egypt
5.1.4 South Africa
5.1.5 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Egyptian Refining Company (ERC)
6.3.2 Nigerian National Petroleum Corporation (NNPC)
6.3.3 KBR Inc.
6.3.4 Midoil Refining and Petrochemicals Company Ltd
6.3.5 Engen Petroleum Ltd
6.3.6 Indorama Eleme Petrochemicals Ltd
6.3.7 NDEP PLC
6.3.8 Mercuria Energy Trading SA
6.3.9 Oryx Energies SA
6.3.10 Octogone International Oil and Gas Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa Oil Refining Industry Segmentation
The oil refining market includes the manufacturing and selling of petroleum products, such as gasoline, diesel, naphtha, LPG, petrochemical products, etc.
The African oil refining market is segmented by geography. The report covers the market size and forecasts for the oil refining market across the major countries, including Nigeria, Algeria, Egypt, South Africa, and Rest of Africa. The market sizing and forecasts for the segment are provided based on refining capacity (in a million barrels per day).
| Geography | |
| Nigeria | |
| Algeria | |
| Egypt | |
| South Africa | |
| Rest of Africa |
Africa Oil Refining Market Research FAQs
What is the current Africa Oil Refining Market size?
The Africa Oil Refining Market is projected to register a CAGR of greater than 2.5% during the forecast period (2024-2029)
Who are the key players in Africa Oil Refining Market?
Egyptian Refining Company (ERC), Nigerian National Petroleum Corporation (NNPC), KBR Inc., Midoil Refining & Petrochemicals Company Ltd. and Engen Petroleum Ltd. are the major companies operating in the Africa Oil Refining Market.
What years does this Africa Oil Refining Market cover?
The report covers the Africa Oil Refining Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Africa Oil Refining Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Oil Refining Industry Report
Statistics for the 2024 Africa Oil Refining market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Oil Refining analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
