Reports from local Mozambican news outlets indicate that this ambitious project will equip Mozambique with a refinery boasting a production capacity of 200,000 barrels of fuel per day, a development poised to significantly alter the country's energy landscape.
According to the President of Mozambique, Daniel Chapo, who announced the agreement, the project is slated for completion within an ambitious 24-month timeframe. The agreement formalizing this collaboration was signed between PETROMOC and Aiteo, marking a pivotal step towards Mozambique's energy independence.
President Chapo elaborated on the broader impact of the project, stating, “This project, to be implemented over a maximum period of 24 months, will increase storage capacity by 160,000 metric tonnes for liquid fuels and 24,000 metric tonnes for Liquefied Petroleum Gas.”
He further emphasized the transformative nature of the initiative, asserting, “This is a transformative project that will position Mozambique as a relevant player in the liquid fuel value chain, with a positive impact on job creation, especially for our youth. The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market.”
Speaking at the recent Mozambique mining and energy conference, President Chapo highlighted the conducive investment climate in the country, noting, “These milestones reflect not only the robustness of our reserves, but above all, the environment of credibility, security, and reform that we are consolidating in attracting the private sector to boost our economy.”
Analysis from Quantum Commodity Intelligence suggests that upon completion, this refinery holds the potential to reshape oil product trade flows across Africa, as Mozambique currently relies entirely on imported petroleum supplies.
The project is anticipated to represent another significant milestone for the African energy market, drawing parallels with the transformative impact of the Dangote refinery in Nigeria, which shifted the West African nation from a net importer to a key regional exporter of refined petroleum products.
Prior to this development, similar to Nigeria’s situation before its current refining capacity came online, refined oil products were reportedly the most imported commodities in Mozambique. India was identified as the primary supplier, followed by the United Arab Emirates, Bahrain, Saudi Arabia, and Malaysia.
However, the projected 24-month timeline for the refinery’s construction is considered ambitious by industry experts, as the development of a large-scale oil refinery typically spans a period of three to eight years.
In a related development, President Chapo also unveiled a new cross-border pipeline project that will connect the port city of Beira to its landlocked neighbor, Zambia. This pipeline, expected to be completed within four years, will have the capacity to transport 3.5 million metric tonnes of petroleum products annually. It is anticipated to significantly alleviate road traffic congestion on National Road Number 6, thereby enhancing road safety and logistical efficiency within Mozambique.