MOZAMBIQUE/ ZAMBIA: Mozambique, Zambia sign deal for US$1.5 billion gas pipeline

Mozambique has unveiled a new US$1.5 billion gas pipeline project in partnership with Zambia, marking another significant step forward in its expanding energy infrastructure, according to the Mozambique News Agency (AIM).

President Daniel Chapo announced the bilateral agreement on Wednesday during the opening of the 11th Mozambique Mining and Energy Conference (MMEC).

The pipeline will stretch from the port city of Beira in Mozambique to Ndola in central Zambia, covering over 1,000 kilometres. Designed to transport up to 3.5 million metric tons of gas annually, the project is expected to ease congestion along the Beira Corridor by reducing heavy truck traffic between the coast and landlocked Zambia.

Although funding details are still unclear, the project includes the construction of storage facilities at both ends of the pipeline. Commissioning is expected within four years.

Mozambique’s extractive sector is on a strong growth trajectory, with mining production increasing by 12 percent year-on-year. Additionally, the Coral Sul FLNG (Floating Liquefied Natural Gas) platform, operated by Italian firm Eni, has already made over 117 LNG shipments.

President Chapo also revealed progress on another key initiative—a joint venture between state-owned fuel company Petromoc and Nigeria’s Aiteo Eastern E & P Company to build a modular fuel refinery in Mozambique. The facility, scheduled for completion within 24 months, will process 200,000 barrels of liquid fuel per day and include storage for 160,000 tonnes of liquid fuel and 24,000 tonnes of liquefied petroleum gas (LPG).

The refinery will produce petrol, diesel, naphtha, and Jet A1 fuel, targeting both local consumption and export markets. President Chapo hailed it as a “transformative project” that will strengthen Mozambique’s role in the regional fuel supply chain, create jobs, and support import substitution efforts.

Mozambique’s position as a key LNG supplier continues to solidify. A second floating LNG platform has been approved in the Rovuma Basin, and long-stalled LNG megaprojects are regaining momentum. French energy company TotalEnergies, which had paused its US$20 billion onshore LNG project in northern Mozambique due to security concerns, announced plans this week to resume operations soon.