Aiteo, PETROMOC to Build 200,000bpd Refinery in Mozambique

Nigerian oil firm Aiteo Eastern E&P Company Limited has entered into a partnership with Mozambique’s state-owned petroleum company, PETROMOC, to build a large-scale refinery in the southeastern African nation.

The agreement, signed recently, paves the way for the construction of a refinery capable of producing 200,000 barrels of refined fuel daily. Mozambican President Daniel Chapo announced the development during an energy and mining conference, stating that the facility is expected to be completed within two years.As outlined, the project will also significantly enhance Mozambique’s fuel storage capabilities—adding 160,000 metric tonnes of capacity for liquid fuels and 24,000 metric tonnes for liquefied petroleum gas (LPG).

President Chapo emphasized the strategic impact of the initiative, describing it as a turning point for Mozambique’s role in the regional oil market. “This project not only strengthens our economic base but is set to boost employment and expand our industrial capabilities. The refinery will produce a range of fuel products including petrol, diesel, naphtha, and Jet A1,” he said.

Market analysts have noted that this new refinery could transform fuel trade across Africa, especially since Mozambique currently imports all of its refined fuel. Top import sources include India, the UAE, Bahrain, Saudi Arabia, and Malaysia.

Though the 24-month timeline is ambitious—given that most refineries take three to eight years to develop—industry experts believe the project reflects growing investor confidence in Mozambique’s reform-driven economy.

President Chapo also unveiled plans for a new cross-border petroleum pipeline between Beira and Zambia. Designed to transport 3.5 million metric tonnes annually, the pipeline is projected to be completed within four years and is expected to ease congestion on key transport routes, improving logistics and safety.