Mozambique in recent years has been making large investments in its oil sector, with the goal of transforming its energy environment and boosting economic growth.
Strategic infrastructure initiatives, international alliances, and regulatory reforms are helping to establish the country as a vital energy center in southern Africa.
Partnerships with other oil-producing African countries
As recently reported, Mozambique’s state-owned company, Petromoc, following in the footsteps of Aliko Dangote, has decided to establish an oil refinery.
This would make it the country’s first oil refinery.
To this effect, Petromac signed a memorandum of understanding with Nigeria’s Aiteo.
“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,” the The president also emphasized the project’s potential for lowering petroleum imports, creating jobs, and increasing the country’s GDP.
“The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market,” he added.
The refinery intends to fulfill domestic gasoline demand while also facilitating exports to neighboring nations, and construction is expected to be finished within two years.
Similar to Nigeria prior to its present refining capability, Mozambique is said to import the most refined oil products, with India being the main provider, followed by Saudi Arabia, Bahrain, Malaysia, and the United Arab Emirates.
Additionally, Mozambique and Zambia have agreed to build a $1.5 billion gas pipeline. This pipeline will carry 3.5 million tons of petroleum products from Mozambique’s port city of Beira to Ndola, Zambia.The project involves the building of storage facilities in both nations and is projected to be completed within four years. This effort seeks to increase energy security and promote economic cooperation between the two countries.
Other energy initiatives
The board of the United States Export-Import Bank in March, 2025, authorized a roughly $5 billion loan for a long-stalled LNG project in Mozambique, a significant step toward resuming development headed by French oil giant TotalEnergies.
TotalEnergies initially projected that the Mozambique LNG project will be operational by 2029. However, earlier this year, the corporation announced that this schedule is no longer realistic.
In September, reports showed that the Bank was considering financing a liquefied natural gas (LNG) project led by Eni SpA off Mozambique’s coast.
Nneka Uyam