The Mozambican Petroleum Industry
This report focuses on the manufacture of petroleum products from crude oil and natural gas and the wholesale and retail trade of these products. The liquid fuels sector is dominated by multinational petroleum companies that distribute products through partnerships with local companies. Mozambique is a net importer of petroleum products, and bitumen is the only product that is produced locally. The decision by Texas-based Anadarko to invest about US$25bn in the Rovuma liquefied natural gas (LNG) project, and other major projects in the Rovuma basin, will bring opportunities for local businesses and skills development.
Growth in the sector has been constrained by the high levels of sovereign debt that prevented the government from investing in infrastructure and damage caused by the two cyclones that hit Mozambique in the first half of 2019. But foreign direct investment is expected to increase as investment decisions start to reach the final stage in gas-related mega projects in the Rovuma basin. Growth in the midstream and downstream sectors is dependent on infrastructure development in the upstream sector. Petroleum products will continue to be imported until the construction of infrastructure for transporting gas onto the mainland where it can be processed.
This report focuses on Mozambique’s petroleum industry including comprehensive information on the state, size and other influencing factors on the petroleum, lubricants, paraffin and biofuels markets, as well extensive information on the on- and offshore gas projects underway. There are profiles of 14 companies operating in the sector including Sasol, which was awarded two new licences for gas exploration onshore in southern Mozambique, and in the offshore Angoche basin, and Petromoc, which has the largest share of the fuel retail market with 100 petrol stations.