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Yahoo
15-05-2025
- Business
- Yahoo
Mozambique Investment In Oil And Gas To Fuel Economic Growth
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. RELATED CONTENT: Maïmouna Tirera Is The Only Black Woman Eyeglass Designer in France Sign in to access your portfolio
Business Insider
13-05-2025
- Business
- Business Insider
Another African country is making an aggressive push to become a major oil player
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. Mozambique is strategically investing in its oil and gas sector to drive economic growth and enhance energy independence. Petromoc has partnered with Nigeria's Aiteo to establish Mozambique's first oil refinery, aiming to reduce imports and boost production. A Mozambique-Zambia joint gas pipeline project aims to enhance regional energy security and promote economic cooperation. 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 President of Mozambique, Daniel Chapo. 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, as seen in the Punch. 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. This was coming years after backing an onshore LNG facility that has faced delays due to security concerns and opposition from environmental groups. Estevão Pale, Mozambique's Energy Minister, stressed the project's importance for global energy security and the country's economic development. TotalEnergies' CEO, Patrick Pouyanné, reiterated the company's commitment to restarting the project, which is slated to start producing gas in 2029. Africa's oil-producing capacity Africa has a varied spectrum of oil-producing countries, including Nigeria, Angola, Algeria, Libya, and Egypt are the largest producers, with each producing hundreds of thousands of barrels per day. Other major producers, according to OPEC and the United States Energy Information Administration (EIA), are the Republic of the Congo, Gabon, Equatorial Guinea, South Sudan, Ghana, Cameroon, Chad, and Tunisia. Very recently, Rwanda dropped its name in the hat after officially announcing its first oil discovery, identifying 13 reservoirs within Lake Kivu, a natural border with the Democratic Republic of Congo. Lake Kivu Currently, Rwanda imports all its petroleum product requirements due to the absence of local production. However, with this recent discovery, the country is poised to join the ranks of Africa's oil-producing nations, alongside major players like Algeria, Nigeria, and Egypt.
