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Mozambique, Zambia sign $1.5 billion deal for cross-border gas pipeline project

Simon Osuji by Simon Osuji
May 9, 2025
in Energy
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Mozambique, Zambia sign $1.5 billion deal for cross-border gas pipeline project
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The governments of Mozambique and Zambia have signed a $1.5 billion agreement to construct a cross-border gas pipeline, the latest in a series of energy infrastructure developments planned to improve energy security in the region. 

Mozambique’s President Daniel Chapo announced the energy cooperation on the sidelines of the recently concluded 11th Mozambique Mining and Energy Conference (MMEC) in Maputo.

The agreement was formalized through a memorandum of understanding (MoU) signed by Mozambique’s Minister of Mineral Resources and Energy, Hon. Estêvão Pale, and Zambia’s High Commissioner to Mozambique, H.E. Kenya Londe, representing Zambia’s Minister of Energy.

“This gas pipeline agreement is not just a project — it’s a blueprint for regional collaboration and shared prosperity. It reflects our commitment to harnessing natural resources for industrial development and energy security across borders,” said Minister Pale during the signing ceremony.

On his part, High Commissioner Londe echoed similar sentiment:

“This initiative stands as a testament to the power of regional cooperation. The momentum from MMEC 2025 proves that African-led energy strategies are not only possible — they’re already underway.”

The proposed 1,000-kilometre pipeline will connect the coastal city of Beira in Mozambique to Ndola in central Zambia, providing an annual transport capacity of 3.5 million metric tons of natural gas. 

The pipeline aims to significantly reduce cargo transport by road along the Beira Corridor, which links Mozambique’s port to several landlocked Southern African nations.

The project also includes the development of gas storage facilities at both ends of the pipeline. 

According to Mozambique’s president, Chapo, the project is slated for commissioning within the next four years, though specific financing details were not disclosed.

The cross-border gas pipeline agreement is one of three major energy deals signed by Mozambique during MMEC 2025.

1. Mozambique–Zimbabwe power pact  

A new bilateral deal focused on strengthening cooperation in power supply, generation, and transmission, reinforcing regional energy integration efforts.

2. Oil refinery deal with Nigeria’s Aiteo

Mozambique will partner with Aiteo Eastern Exploration and Production Company to construct a 200,000 barrels-per-day (bpd) oil refinery. 

The refinery, expected to be completed within 24 months, will include 160,000 tonnes of liquid fuel storage capacity and 24,000 tonnes of LPG storage.

“This is a transformative project that will position Mozambique as a key player in the liquid fuel value chain, with significant benefits for job creation and import substitution,” President Chapo said.

Mozambique continues to leverage its huge natural gas reserves. 

Last month, the government approved the development plan for Coral Norte, a $7.2 billion floating liquefied natural gas (FLNG) facility led by Eni—the second such project following Coral Sul.

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