Mozambique and Zambia have signed a landmark US$1.5 billion agreement to build a gas pipeline stretching over 1,000 kilometers, aimed at improving regional energy infrastructure and easing truck traffic along a key trade route.
President Daniel Chapo announced the deal on Wednesday during the 11th Mozambique Mining and Energy Conference (MMEC), highlighting the pipeline’s potential to boost the country’s energy export capacity and support regional growth.
“This transformative project will strengthen Mozambique’s role as a strategic energy supplier,” said Chapo. “It is part of our broader vision to create jobs and reduce our reliance on imported fuel.”
The proposed Beira–Ndola gas pipeline will run from the coastal city of Beira in Mozambique to Ndola in central Zambia. With a planned annual transport capacity of 3.5 million metric tons, the pipeline is expected to significantly reduce heavy truck traffic along the Beira Corridor, a major regional trade route.
The project also includes building storage facilities at both ends of the pipeline, although Chapo noted that funding details remain under discussion. He added that commissioning is expected within four years.
Mozambique’s energy sector continues to gain momentum, with Chapo also announcing a separate joint venture to construct a modular fuel refinery.
The deal, between state-owned Petromoc and Nigeria’s Aiteo Eastern E & P Group, will bring a new processing plant online within 24 months.The refinery will have a daily processing capacity of 200,000 barrels of liquid fuel and include storage for 160,000 tonnes of fuel and 24,000 tonnes of LPG. It will produce petrol, diesel, naphtha and jet fuel for both local and international markets.
“This refinery will position Mozambique as a relevant actor in the liquid fuel value chain,” Chapo said, calling it a major step toward import substitution.Meanwhile, Mozambique’s liquefied natural gas (LNG) sector is also showing signs of revival.
French oil major TotalEnergies said it hopes to resume its US$20-billion onshore LNG project in northern Mozambique by mid-2025, after suspending operations in 2021 due to security concerns.“We aim to restart [the project] by mid-2025,” TotalEnergies CEO Patrick Pouyanné confirmed during the company’s Q1 earnings call.
A second onshore LNG project, led by ExxonMobil, is also preparing for a comeback, with contractor Bonatti hired to refurbish key infrastructure on the Afungi Peninsula.
These developments mark a resurgence in confidence in Mozambique’s energy potential, despite ongoing security challenges in the Cabo Delgado region.
