Faith Nyasuguta
Mozambique is stepping onto the African oil stage with bold moves that signal its ambition to become a major energy powerhouse. In a continent dominated by established producers like Nigeria, Angola, and Algeria, Mozambique is charting its own course through strategic partnerships, massive infrastructure projects, and an aggressive push for energy independence.
At the heart of Mozambique’s energy strategy is its state-owned company, Petromoc, which recently announced plans to construct the country’s first-ever oil refinery. The move comes through a partnership with Nigerian energy firm Aiteo and is designed to reduce the nation’s heavy reliance on fuel imports while boosting domestic production. The refinery will have the capacity to store 160,000 metric tonnes of liquid fuels and 24,000 metric tonnes of Liquefied Petroleum Gas (LPG).
President Daniel Chapo described the refinery as a game-changer, with far-reaching economic implications: “This project will significantly reduce petroleum imports, create thousands of jobs, and increase our GDP,” he stated. The refinery will produce gasoline, diesel, naphtha, and jet fuel (Jet A1), targeting not only Mozambique’s domestic market but also neighboring countries, with construction expected to be completed within 24 months.
Currently, Mozambique imports most of its refined oil products, with India being the main supplier, followed by Saudi Arabia, Bahrain, Malaysia, and the UAE. The new refinery aims to reverse this trend and reduce the economic burden of fuel dependency.
In another bold move, Mozambique is partnering with Zambia on a $1.5 billion gas pipeline. The project will transport 3.5 million tons of petroleum products from Mozambique’s port city of Beira to Ndola, Zambia, and includes the construction of vital storage infrastructure in both countries. The pipeline, which will take four years to complete, is seen as a key initiative to enhance regional energy security and foster stronger economic ties between the two nations.
Beyond the refinery and pipeline, Mozambique is also making a strong comeback in the liquefied natural gas (LNG) sector. In March 2025, the United States Export-Import Bank approved a massive $5 billion loan to support a long-stalled LNG project led by TotalEnergies. The project, originally scheduled to go online by 2029, had faced delays due to security concerns in the northern Cabo Delgado region, where insurgent violence disrupted operations.
Mozambique’s Energy Minister, Estevao Pale, emphasized the importance of the LNG project not just for Mozambique, but for global energy supply stability. TotalEnergies CEO Patrick Pouyanne has reaffirmed the company’s commitment to resuming operations, with expectations that production could begin before the end of the decade.
Meanwhile, international interest in Mozambique’s offshore resources remains high. Italian energy company Eni SpA is also pursuing an offshore LNG project near the country’s coast, indicating sustained foreign confidence in Mozambique’s energy potential despite earlier challenges.
Mozambique’s emergence comes amid a wider continental shift in oil dynamics. New players like Rwanda, which recently discovered 13 oil reservoirs under Lake Kivu, and Namibia, where Shell and TotalEnergies have identified an estimated 2.6 billion barrels of oil, are reshaping Africa’s energy map. Rwanda, which currently imports all its petroleum, hopes to join the list of producers soon, while Namibia targets commercial production by 2029.
For decades, Africa’s oil scene has been dominated by a few giants. But with strategic alliances, massive infrastructure investments, and regulatory reforms, Mozambique is positioning itself to rival them. Its mix of ambition, regional cooperation, and international backing could soon make it southern Africa’s newest energy giant and a force to reckon with on the global oil stage.
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