Company Announces Plan to Build Another Refinery, Compete With Dangote

• Aiteo has secured a major EPC deal to build a 240,000 BPD refinery in Mozambique, which aims to boost domestic fuel production and reduce import reliance
• The project, set to develop in phases, will use modular technologies and provide gasoline, diesel, jet fuel, and naphtha for local and regional demand
• The refinery supports Mozambique’s long-term energy policy, creating jobs and increasing access to cleaner fuels while positioning the country as a regional energy hub

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

One of Africa’s top energy firms, Aiteo, has secured a major engineering, procurement, and construction (EPC) deal to establish a refinery in Mozambique that will produce 240,000 barrels of oil per day.

The project aims to significantly boost domestic fuel output, reduce reliance on imports, and position the country as a key energy supplier in Southern Africa.

The agreement was officially announced at a signing ceremony attended by President Daniel Chapo, marking the beginning of a strategic partnership between Aiteo and the Mozambican government.

The project aligns with President Chapo's long-term focus on industrialisation and energy independence, reflecting his administration’s ambition to build industrial infrastructure nationwide and attract impactful energy investments.

The refinery, which will be developed in phases, will initially include a processing unit capable of refining 80,000 barrels per day, with plans to expand to full capacity of 240,000 barrels per day.

The facility will use low-complexity, modular technologies to ensure operational stability and rapid deployment. The refinery’s output, which is expected to meet local demand and foster regional trade, will include petrol, diesel, jet fuel, and naphtha.

This project also supports Mozambique's long-term energy policy, which prioritises industrial growth, job creation, and enhanced domestic refining capacity. According to government officials, the refinery will increase access to liquefied petroleum gas (LPG) and cleaner fuels, improving energy affordability and accessibility, especially for clean cooking initiatives.

“This EPC contract marks a defining milestone for Aiteo and Mozambique’s energy future,” said Dr. Ransome Owan, Group Managing Director for Infrastructure at Aiteo. “It will reduce import reliance, create jobs, and lay the foundation for Mozambique to become a leading hub in the region’s downstream energy sector.”

The first phase of construction is expected to be completed within 24 months. Once operational, the refinery will become one of the largest of its kind in the Southern African Development Community (SADC), significantly enhancing the region's energy landscape.

This agreement underscores Aiteo's commitment to long-term infrastructure development across Africa and the Mozambican government’s drive for transformative industrial partnerships. It also exemplifies President Chapo's strategic vision, as his administration has made energy infrastructure a central pillar of Mozambique's economic development.

Dangote refinery expands to another country

Legit.ng reported that plans to build extensive fuel storage facilities in Namibia, with a minimum capacity of 1.6 million barrels of petrol and diesel, have been started by the Dangote Petroleum Refinery.

The refinery has begun these plans as part of its larger goal to provide refined petroleum products to key Southern African markets, thereby increasing its presence outside Nigeria.

This move highlights the refinery's ambition to control the fuel supply across Africa and beyond, potentially altering regional energy trade patterns and improving southern African countries' access to refined goods.

Source: Legit.ng