The document was signed between Energy Minister Salvador Namburete, representing the government, and Ercilio Varela for Ayr Logistica. This company is the Mozambique-registered branch of the Texas-based firm Ayr Logistics.
Speaking on the occasion, Namburete said that the work, which is to take about six years to complete, will be done in three phases. The undertaking is to have a capacity to produce 300,000 barrels of refined fuels a day.
A third of this production will be to supply the domestic market, while the remainder will be for export. The refinery could thus eliminate Mozambique's dependence on the import of refined fuels, and make a significant contribution to the country's balance of payments.
"Expectations about the implementation of this project are high, because it will have a strong social and economic impact, not only in the country, but also within the southern African region, given the strategic nature of its produce", said Namburete.
This undertaking, the first of its kind in Mozambique since independence, will create 450 permanent jobs when it starts operating, plus a similar number of temporary jobs during the building stage.
Implementation of this project will imply opening access routes, a new branch of the northern rail line, bridges, small reservoirs, a power central, a station for the treatment of water and waste, a cargo terminal, a pipeline, storage tanks and other industries for the processing of by-products.
The government approved the refinery project earlier this month.
Known as the Ayr Petro-Nacala project, its largest investor is Ayr Logistics, with about 70 per cent. The other investors are Varela and Ferreira Mendes, the two Mozambicans who set up Ayr Logistica Limitada, and a South African citizen named Colin Crorie.
The crude oil for the refinery can be unloaded at Nacala port.
Although Nacala is widely regraded as the best deep water harbour on the east African coast, it has, up until now, been under-used.
The port needs no dredging, and is capable of accommodating very large vessels.
SOURCE: AIM
