Market Trends of Gabon Oil and Gas Downstream Industry
This section covers the major market trends shaping the Gabon Oil & Gas Downstream Market according to our research experts:
Oil Refining Capacity Growth to Remain Stagnant
- In 2021, no projects related to refineries were in the proposal stage, and only a few investments are expected in the refineries in the forecast period.
- The Port Gentil Refinery has a crude oil distillation capacity of 24,000 b/d. The refinery operates below capacity, and its output fluctuates due to maintenance challenges at the aging facility. Gabon's economy is heavily dependent on its oil production. Moreover, adding a downstream vertical may make the oil and gas supply chain more profitable.
- In November 2022, BW Energy's Hibiscus/Ruche development project off the coast of Gabon focused on the Hibiscus and Ruche fields, which are about 20 kilometers northwest of the Tortue field. In the first phase of this project, up to six horizontal production wells will be drilled as part of a 12-well phased program and connected to a production plant.
- The refining capacity is expected to remain stagnant in the forecast period due to the decreasing oil production and lack of investment in the downstream infrastructure.
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Decreasing Production of Oil to Restrain the Market
- Gabon is a mature oil producer in West Africa that has been facing a declining output, for more than a decade.
- Oil production in the country decreased by 12.7%, to 9 million tonnes in 2020, from 10.4 million tonnes in 2021. Most of the oilfields in the country have reached maturity. The downstream industry is suffering, as the decrease in crude oil production is below the utilization capacity of the refineries. However, an increase in oil production may lead to the installation of new refineries.
- One of the most essential Gabon's crude oil blends is the Rabi, with an API gravity of 33.2, a high quality, low sulfur (0.14%) crude oil. The oil grade is of excellent quality and requires a low level of refining maintenance and equipment. The country exports 90% of its total crude oil production.
- Hence, the Gabon oil and gas downstream market is expected to grow meagerly in the forecast period, due to a decrease in oil production and aging downstream facilities.
