In a move that strengthens the African energy market, the Zambia Development Agency has handed over a license to CZPC to advance the newest energy development in Zambia. The nation is aiming to develop its new refinery to boost the output capacity of essential energy resources and reduce reliance on imports of energy resources. Being developed by a special purpose vehicle created specifically for the project, the Zambian refinery is set to reshape the country’s energy market over the coming years.
Africa’s role in the international energy market is shifting this year
For far too long, the world has overlooked the potential of the African energy market in favor of more lucrative energy projects in other regions of the world. However, with the market facing an uncertain future due to the ongoing war in Ukraine and the recent ousting of Nicolas Maduro in Venezuela by US President Donald Trump, an opportunity has emerged.
The opportunity is that more nations can now claim their rightful place as drivers of growth across the international energy sector. This has become necessary as nobody can predict what the next development across the global energy market may be.
Will we see more South American leaders being ousted by the US? If Trump’s statements are anything to go by, then nations such as Colombia and Mexico need to be cautious. Africa has emerged from the turmoil in the market as a potential region that has tremendous growth potential.
Zambia’s $1.1 billion refinery is set to reshape global sentiments for African energy
In a recent development, the China Zambia Petrochemical Corp. (CZPC), a new special-purpose vehicle created by Industrial Development Corp. (IDC) and Fujian Xiang Xin Corp. (FJXX), has secured the licensing to develop Zambia’s new crude refinery and integrated energy complex in Ndola, Zambia.
Zambia’s refinery can now move from the planning phase into implementation
By securing the necessary licenses to proceed, the project developers can now move from the planning phase to actual on-the-ground operations regarding the construction of associated infrastructure and components.
A memorandum of understanding was signed in July of last year during the Invest Zambia International Conference. Ground was broken on the project site towards the end of last year, with expectations that the first phase of the construction will be completed later this year.
“Through CZPC, we are driving a transformative venture that will create jobs, enhance national self-sufficiency and support long-term economic growth,” – Industrial Development Corporation CEO Cornwell Muleya
With Nigeria opening a new licensing round for energy developments across the oil market, the future of the African energy market is looking brighter than ever, thanks to developments like the $1.1 billion refinery in Zambia.
During the peak construction phase, the Zambian refinery will generate more than 2,200 jobs for locals, and later support the full-time employment of over 600 direct and 2,000 indirect positions. The new refinery will process 3 million tpy of crude oil, which is equivalent to around 60,000 bpd, or enough to meet Zambia’s entire current fuel demand.
“We are honoured to advance this project into its implementation phase in partnership with the government of Zambia through IDC,” – Fujian Xiang Xin Corporation Chairperson Mr. Huang Tieming
Market data reveals the new future for the African energy sector this year
With new market data revealing that the African upstream sector is set to grow dramatically this year, the future of the African energy market is looking brighter than ever. With construction work having commenced in Zambia last year, the project has now moved past the planning phase to actual implementation, positioning Zambia as the next African nation to forever alter its energy outlook, especially as the project reaches completion.
