Mozambique has signed two landmark agreements to launch its first crude oil refinery and a major pipeline project, marking a strategic leap in the country’s energy sector. The deals, signed during the 11th Mozambique Mining and Energy Conference (MMEC) in Maputo, aim to bolster regional energy security and drive economic growth.
The first memorandum of understanding (MOU), signed by state-owned Petromoc and Nigeria’s Aiteo Eastern E&P Co. Ltd., outlines plans to develop a modular refinery capable of producing up to 200,000 barrels per day of gasoline, diesel, jet fuel, and naphtha. The project will also include 160,000 tonnes/year of liquid fuel storage and 24,000 tonnes/year of LPG capacity, all to be completed within 24 months.
The second MOU involves the construction of a $1.5 billion, 1,400-km pipeline that will transport 3.5 million tonnes/year of refined petroleum products from Mozambique’s Port of Beira to Ndola, Zambia. The pipeline project also includes storage infrastructure in both countries and is expected to be completed within four years.
These initiatives are seen as crucial to positioning Mozambique as a key player in the liquid fuels value chain, reducing fuel imports, boosting exports, and creating jobs.
LNG Project Updates
In parallel, Mozambique is accelerating its liquefied natural gas (LNG) ambitions. The government has approved a $7+ billion plan for Coral Norte FLNG, the second phase of the Coral gas project. Operated by Eni, Coral Norte is expected to produce 3.55 million tonnes/year for 30 years, starting in 2028.
Meanwhile, TotalEnergies’ long-delayed Mozambique LNG project is back on track after securing $4.7 billion in financing from the US Export-Import Bank. The 13-million tpy development had been on hold since 2021 due to regional security concerns.
Further expansion is expected with ExxonMobil’s Rovuma LNG project, which could produce up to 18 million tonnes/year from the gas-rich Area 4 block. ExxonMobil anticipates a final investment decision by 2026, with project work beginning within the next year.
Together, these projects signal Mozambique’s rising role in both regional and global energy markets—across oil, refined products, and LNG.