Nampula, Mozambique, 15 Aug – The government of the Mozambican province of Nampula has voted in favour of building an oil refinery in the coastal district of Nacala-a-Velha, at an investment of US$1.3 billion, according to Mozambican newspaper Notícias.
Called Ayr Petro-Nacala, the project is headed up by Ayr Logistics Limited Inc, a US oil company based in Texas, and also ha three investors from South Africa and one from Mozambique.
The project includes construction of a refinery with a daily capacity of 100,000 barrels of oil, essentially destined for the export market (Malawi, Zimbabwe and Zambia).
It also includes building several support facilities for the project’s main business.
The project will be carried out in three stages, each of which is expected to cost US$400 million for setting up modules to deal with 33,000 barrels of oil per day.
The project will be set up in the district of Nacala-a-Velha and will cover an area of 838 hectares, which area has already been approved by the provincial government.
The consortium that will implement the project is responsible for the distribution of refined oil products in the domestic market, with a market share of 15 percent according to projections from the Industrial Duty Free area of which the project will be a part. (macauhub)