The Mozambican President, Daniel Chapo, announced on Wednesday, May 7, the signing of a memorandum of understanding between the state-owned company Petromoc and the Aiteo Group, aimed at the construction of an industrial complex for the production and storage of liquid and gaseous fuels. The announcement was made during the opening session of the 11th Mozambique Mining and Energy Conference and Exhibition (MMEC 2025), taking place in Maputo.
According to the President, the project includes the construction of a modular refinery with a daily processing capacity of 200,000 barrels, as well as storage infrastructure for liquid fuels (160,000 metric tons) and Liquefied Petroleum Gas – LPG (24,000 metric tons). The projected implementation period is two years.
“The memorandum of understanding between Petromoc, our national company, and the Aiteo Group aims to build a modular refinery in Mozambique, with a positive impact on job creation, our GDP, import substitution, and an increase in exports,” stated the Head of State.
The Aiteo Group is an independent oil company headquartered in Nigeria, regarded as one of the leaders in hydrocarbon production and marketing on the African continent.
In the same address, Daniel Chapo also announced a second memorandum of understanding, to be signed with the Government of Zambia, for the construction of a pipeline between the city of Beira, in Mozambique, and Noa, in Zambian territory. The pipeline will have the capacity to transport 3.5 million tons of petroleum products per year, with an estimated investment of 1.5 billion US dollars (96 billion meticals).
“The pipeline will enable the transport of petroleum products to the Zambian market, reducing truck traffic on the roads, particularly on National Road Number 6, which connects the Port of Beira to the Republic of Zambia,” the President stated.
In the natural gas sector, Chapo mentioned the approval of the Development Plan for the Coral North Project, involving a floating Liquefied Natural Gas (LNG) platform in Area 4 of the Rovuma Basin, with an investment of 7 billion US dollars (448 billion meticals).
Progress was also highlighted in the relaunch of the Mozambique LNG Project, valued at around 20 billion US dollars (1.2 trillion meticals), with financing from the U.S. Exim Bank and led by TotalEnergies. Preparations are also underway for the start of the Rovuma LNG Project, led by ExxonMobil, with an estimated investment of 27 billion US dollars (1.7 trillion meticals).
“The environment of credibility, security, and reform that we are consolidating is attracting strategically significant investments,” Chapo said, referring to the projects currently underway in the energy sector.
In the mining domain, the President reported that the sector grew by 12% in 2024. Additionally, 117 shipments of liquefied natural gas were exported from Coral Sul, a project operated by ENI, and 563,833 new electricity connections were completed, raising the national access rate from 53.4% to 60.1%.
Among the projects under implementation, the Temane Thermal Power Plant was mentioned, which is expected to ensure domestic production of LPG and approximately 450 megawatts of electricity. The launch of the Anchimbe Petrochemical City was also cited as part of initiatives aimed at industrial diversification.
Daniel Chapo emphasized that, despite the progress made, challenges persist in the artisanal mining sector, particularly regarding non-compliance with environmental and labor standards, tax evasion, and illegal practices. The President called for collaboration among the government, investors, and civil society to address these issues.
In response, he referred to the launch, in March, of a legal reform process in the sector, which includes the revision of the Mining Law, the Petroleum Law, and their respective regulations. The creation of a new Mining Promotion Agency, which will replace the National Institute of Mines, is also planned. “These reforms aim to ensure a more attractive environment for investment, greater efficiency from the government, and a fairer distribution of benefits to the State and local communities,” he stated.
At the regional level, the Head of State highlighted Mozambique’s contribution to energy supply, particularly hydropower, to neighboring countries such as South Africa, Botswana, Eswatini, Malawi, Zambia, and Zimbabwe. He also noted investments in renewable energy sources, such as solar and wind, as part of the country’s response to the challenges of the energy transition.
MMEC 2025, held under the theme “Investing in a New Era: Transforming Mozambique’s Natural Resources to Drive Industrialization and Regional Integration,” is taking place on May 7 and 8. The event brings together policymakers, representatives of public and private institutions, business leaders, regulators, academics, and national and international experts. Ministerial delegations from South Africa, Malawi, Zambia, and Zimbabwe are also in attendance.
The program includes discussions on sustainable energy access, logistics corridors, financing for the mining and energy sectors, energy transition, and local content policies. Since its inception in 2008, the conference has established itself as a platform for multisectoral dialogue and cooperation between the government, the private sector, and development partners.
