On Thursday, August 29, 2024, President Filipe Jacinto Nyusi of Mozambique officially inaugurated two new pumping platforms at the Port of Beira.
These platforms, built by Companhia do Pipeline Moçambique-Zimbabwe (CPMZ), are located in Beira (Sofala) and Maforga (Manica) and have increased the pipeline’s fuel pumping capacity from Beira to Feruka, Zimbabwe, from two million to three million cubic meters per year.
Company Overview: CPMZ
Companhia do Pipeline Moçambique-Zimbabwe, Limitada (CPMZ), has been a key player in Mozambique’s energy sector for over 40 years.
The company’s stability and success have been bolstered by transparent corporate governance and strong relationships between its public and private shareholders.
CPMZ’s primary mission is to ensure a secure supply of refined petroleum products to Zimbabwe, while also generating economic value for Mozambique.
Collaborative Vision with Zimbabwe
CPMZ and the Government of Zimbabwe share a common goal: to establish the Beira-Harare pipeline as the preferred transporter of refined products to Southern Africa and position Harare as a central fuel distribution hub.
To achieve this, CPMZ is expanding its pipeline capacity to meet growing demand, ensuring the pipeline remains a key asset for the region.
Strategic Importance of the Beira Corridor
The Beira Corridor is crucial for energy transportation within the Southern African Development Community (SADC) region, connecting landlocked countries like Zimbabwe, Zambia, the DRC, and Malawi to the Indian Ocean.
The integrated infrastructure of CPMZ and CFM (Mozambique Ports and Railways) is vital for the energy security of these nations.
The recently developed Beira Corridor Master Plan, created in response to a request from Transport Minister Mateus Magala, aims to coordinate investments and operations to maintain the corridor’s competitiveness.
Enhancing Pipeline Capacity
The newly inaugurated platforms mark a significant milestone for CPMZ. Despite global uncertainties during the pandemic, the company decided to expand its pipeline capacity, and four years later, this project has come to fruition.
With the increase from two million to three million cubic meters per year, the pipeline not only ensures continued supply to Zimbabwe but also enhances access for other hinterland countries, aligning with SADC agreements.
This expansion will make the pipeline from Beira more competitive, providing a more efficient and cost-effective alternative to road transport. By reducing the need for fuel transport by road, the project will also alleviate truck congestion and improve road safety along the Beira Corridor.
CPMZ’s Ongoing Expansion Project
The inauguration marks the completion of Phase I of CPMZ’s capacity expansion project, which involved:
- Increasing pipeline capacity from 2 million to 3 million cubic meters per year.
- Constructing two new pumping platforms in Beira and Maforga.
- Replacing old pumps with higher capacity units.
- Investing over $40 million, funded by CPMZ’s own resources and national bank support.
- Engaging a workforce of 35 nationals and 2 foreigners, along with 15 national contractors.
As CPMZ prepares for Phase II, plans are underway to further increase capacity to 5 million cubic meters per year by constructing two additional satellite stations in Nhamatanda and Messica. This phase is currently in advanced design stages.
Future-Proofing Mozambique’s Oil Infrastructure
Mozambique and CPMZ are already equipped to meet future demands exceeding 5 million cubic meters. When necessary, CPMZ will upgrade the existing 10-inch pipeline to a larger one, enhancing capacity without disrupting operations, thus ensuring the pipeline remains a cornerstone of Southern Africa’s energy infrastructure.
The final phase, Phase III, will focus on increasing capacity beyond 5 million cubic meters per year by replacing the existing pipeline with a larger one, ensuring seamless operation and full utilization of the existing infrastructure.
