Mozambique has signed a US$1.5 billion pipeline deal with Zambia to enhance energy infrastructure. The pipeline will reduce road traffic and transport 3.5 million metric tons of gas annually. Additionally, a modular fuel refinery project was announced to increase liquid fuel production. Major LNG projects are progressing despite challenges, solidifying Mozambique’s energy potential.
Mozambique has recently inked a significant deal with Zambia for a US$1.5-billion gas pipeline project, marking yet another step forward for the country’s energy infrastructure. The agreement was announced by President Daniel Chapo during the commencement of the 11th Mozambique Mining and Energy Conference (MMEC) held on Wednesday. This ambitious pipeline will stretch from Beira, Mozambique’s coastal hub, to Ndola, which is located over 1,000 kilometers northwest in Zambia.
The anticipated pipeline holds a capacity of transporting 3.5 million metric tons of gas annually. This is expected to alleviate the traffic congestion on the Beira Corridor, an important network linking the port city with several landlocked nations inland. However, details regarding the project’s funding sources are still murky, although officials project completion within four years.
In addition to the pipeline, President Chapo also disclosed plans for a new modular fuel refinery in collaboration with Aiteo Eastern E & P Group. This joint venture, in partnership with Mozambique’s state grain company Petromoc, aims to produce 200,000 barrels of liquid fuel daily and will include storage for 160,000 tonnes of liquid fuel and 24,000 tonnes of liquefied petroleum gas (LPG).
Chapo labeled the refinery project as “transformative,” arguing it will enhance Mozambique’s role in the fuel value chain while having a positive impact on job creation. This announcement comes on the heels of significant developments in Mozambique’s extractive sector, which has seen a year-on-year mining increase of 12 percent and numerous shipments from the Coral Sul floating liquefied natural gas platform.
In a related note, Mozambique has solidified its status as a strategic LNG supplier. The approval for a second floating LNG platform in the Rovuma Basin, along with new progress on previously stalled LNG megaprojects, has buoyed optimism. Notably, French energy firm TotalEnergies is preparing to resume its US$20-billion onshore LNG project in northern Mozambique, which was previously halted due to security concerns.
This project faced delays after Islamist militants attacked Palma in 2021, resulting in multiple casualties, including foreign personnel. Nonetheless, TotalEnergies’ CEO Patrick Pouyanné expressed optimism about restarting the project by mid-2025 during the company’s recent earnings presentation.
Meanwhile, another onshore LNG initiative led by ExxonMobil is also advancing. ExxonMobil has contracted Italian contractor Bonatti to revamp a base on Afungi Peninsula that is critical for the US$27 billion LNG project. This base will serve as a housing and operational site for personnel involved in developing the LNG facilities. Overall, these developments signal a bright yet challenging future for Mozambique’s energy landscape.
Mozambique’s new agreement with Zambia for a gas pipeline highlights ongoing strides in the country’s energy sector. The pipeline, aiming to facilitate transportation while minimizing road traffic, emerges alongside plans for a transformative fuel refinery. With significant LNG ventures also in the pipeline, despite security concerns, Mozambique appears poised to enhance its regional energy influence.
Original Source: macaonews.org
