Another Nigerian Company Set To Construct Refinery

• Aiteo Eastern E&P and PETROMOC have partnered to build a refinery in Mozambique, capable of producing 200,000 barrels of fuel per day
• The refinery project is set to increase Mozambique's storage capacity, positioning the country as a key player in the regional fuel market
• The Dangote petroleum refinery remains the largest in Africa, with the ability to produce 650,000 barrels per day

Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.

Aiteo Eastern E&P Company Limited, a Nigerian energy giant, has partnered with Mozambique’s national petroleum company, PETROMOC, to build a major refinery in the southern African nation.

The agreement, signed recently, will see the construction of a refinery capable of producing 200,000 barrels of fuel per day.

According to Mozambique’s President, Daniel Chapo, the refinery is expected to be completed within 24 months, providing substantial growth for the country’s energy infrastructure.

The new facility will increase Mozambique's storage capacity for liquid fuels by 160,000 metric tonnes and 24,000 metric tonnes for Liquefied Petroleum Gas (LPG).

President Chapo said during his remarks at the recent Mozambique Mining and Energy Conference said:

“This is a transformative project that will position Mozambique as a key player in the regional liquid fuel market, with a positive impact on job creation, especially for our youth.”

The refinery is expected to produce key products including gasoline, diesel, naphtha, and Jet A1, with aspirations to tap into regional markets.

Another refinery project in Africa

The refinery is poised to reshape oil trade flows across Africa, with Mozambique currently relying heavily on imported refined petroleum products.

According to Quantum Commodity Intelligence, once operational, the refinery will reduce the country's reliance on imports and boost local refining capacity, much like Nigeria’s own refinery projects have shifted its status from a net importer to a regional exporter of refined oil products.

The project’s timeline, however, is considered ambitious, as oil refineries typically take between three and eight years to complete. Despite this, both Aiteo and PETROMOC are committed to meeting the 24-month deadline, Punch reports.

In addition to the refinery, President Chapo unveiled a major infrastructure initiative: a cross-border pipeline linking the port city of Beira to Zambia.

The pipeline, set to be completed in four years, will transport 3.5 million metric tonnes of petroleum products annually, helping to alleviate road traffic and improve logistics efficiency, particularly along National Road Number 6.

Dangote Refinery releases 4 steps to become a distributor

Earlier, Legit.ng reported that Dangote Refinery has announced opportunities for individuals interested in becoming distributors of its petroleum products.

The 650,000-barrel-per-day refinery is working towards reaching full production capacity and recently slashed its prices.

The Dangote Refinery already has six official distribution partners and is seeking more to help ensure affordable prices nationwide.

Source: Legit.ng