The Gabon oil and gas downstream market is expected to witness a CAGR of more than 0.11%, during the forecast period of 2020 – 2025. Factors, such as increasing consumption of petroleum products, are expected to boost the demand for the market studied, during the forecast period. However, oil production has been reducing steeply since the past few years, which, in turn, is expected to have a negative impact on the refinery sector in the country in the future.

Oil refining capacity growth is expected to remain stagnant, during the forecast period. The Sogara Refinery is the only refinery in the country. Moreover, there are no plans for setting up new refineries in the country, as of 2019.

As of 2018, the country consisted of oil reserves of 2,000 million barrels, which, if economically produced, may provide a boost to the market and increase the refinery throughput. Therefore, an increase in oil production in the country is expected to boost the demand for new refineries, which, in turn, is likely to create opportunities for the companies operating in the industry.

However, the decreasing oil production in the country is expected to restrain the market in the forecast period, as it directly effects the throughput capacity of the refining sector in the country.

Key Market Trends

Oil Refining Capacity Growth to Remain Stagnant

  • In 2019, no projects related to refineries were in the proposal stage, and only little investments are expected in the refineries in the forecast period. The capacity of a refinery in the country stood at approximately 24,000 barrels per day, as of 2019.
  • 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 2018, petroleum products exports accounted for USD 4,218 million in exports from the country.
  • 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.



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 7.6%, to 9.7 million metric ton in 2018, from 10.5 million metric ton in 2017. 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 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 crude oil exports, in 2018, were 174.1 thousand barrels per day.
  • 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.



Competitive Landscape

The Gabon oil and gas downstream market is consolidated. The major companies include Total SA, Eni SpA, Perenco SA, Gabon Oil Company, and Engen Petroleum Ltd.

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