Aiteo, one of Africa’s leading energy firms, has entered into a major agreement to build a 240,000 barrels-per-day (bpd) refinery in Mozambique, in partnership with the country’s government.
As reported by Business Insider, the project was formalized during a signing ceremony chaired by President Daniel Chapo, signaling the official start of a strategic collaboration aimed at boosting fuel production, reducing dependence on imports, and positioning Mozambique as a major energy supplier in Southern Africa.
The refinery will be developed through a joint venture between Aiteo US Corporation and Mozambique’s state-owned petroleum company, Petromoc.
U.S.-based Deerfield Energy Services LLC, a well-established engineering company, has been awarded the engineering, procurement, and construction (EPC) contract, underscoring the international scope and ambition of the project.
Planned as a phased development, the refinery will begin operations with an initial processing capacity of 80,000 bpd and gradually scale up to its full 240,000 bpd target.
It will incorporate low-complexity, modular technology to accelerate construction and ensure operational reliability.
The facility will produce gasoline, diesel, jet fuel, and naphtha, supplying both local and regional markets, and is part of Mozambique’s broader energy strategy to enhance domestic refining, spur industrial development, and create jobs.
Officials say the project will also play a key role in improving access to cleaner fuels and liquefied petroleum gas (LPG), particularly in support of clean cooking initiatives aimed at improving energy access and affordability.
It reflects President Chapo’s administration’s efforts to attract large-scale energy investments and drive industrial growth across the country, with a strong focus on energy independence.
“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.”
Construction of the refinery’s first phase is expected to be completed within 24 months.
Once fully operational, it will be one of the largest refineries in the Southern African Development Community (SADC), significantly increasing the region’s refining capacity.
The deal further underscores the government’s commitment to transformative industrial partnerships and highlights Aiteo’s dedication to long-term infrastructure investment in Africa.
It also reflects the strategic direction of President Chapo, whose administration has made energy infrastructure a core pillar of Mozambique’s economic development plans.
See Also:
Mozambique Pushes to Join Africa’s Oil Leaders with New Refinery and Big Gas Projects
Image Credit: 360 Mozambique
