Several projects are underway to position Mozambique as a leading force in Africa’s oil and gas industry.
Key initiatives include a partnership between Mozambique’s state-owned Petromac and Nigeria’s Aiteo to build Mozambique’s first oil refinery, Business Insider Africa reports. Additionally, the Mozambique-Zambia joint gas pipeline project is underway, with a goal to boost regional energy security and strengthen economic ties.
“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,” Mozambique President Daniel Chapo said of the Petromac deal, emphasizing the project’s potential to reduce petroleum imports, generate employment, and boost the country’s GDP.
The initiative seeks to emulate Nigerian billionaire Aliko Dangote by developing Mozambique’s first-ever oil refinery in the southeastern African nation.
“The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market,” Chapo added.
Construction of the oil refinery is set to be completed by 2027, with local officials relying on the development to meet domestic gasoline demand while also enabling exports to neighboring countries, positioning Mozambique as a key energy hub in southern Africa.
Mozambique currently relies on imports for most of its refined oil products, with India being the largest supplier, followed by Saudi Arabia, Bahrain, Malaysia, and the UAE. However, with the ongoing development projects, the country aims to join the ranks of major oil producers like Nigeria, Angola, Algeria, Libya, and Egypt, all of which produce hundreds of thousands of barrels per day.
Other initiatives include a major boost from the U.S. Export-Import Bank, which in March 2025 approved a nearly $5 billion loan to revive a long-delayed LNG project in Mozambique. Led by French energy giant TotalEnergies, the project marks a pivotal step in restarting development.
Mozambique’s Energy Minister Estevão Pale highlighted its significance for both global energy security and the nation’s economic growth. Gas production is expected to begin in 2029.
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