Industrial Development Corporation (IDC) CEO Mr. Cornwell Muleya and his delegation today paid a courtesy call on Minister of Petroleum Hon. Makozo Chikote, briefing him on the status of the new petroleum refinery in Ndola and the turnaround of Indeni Energy.
The refinery is being developed by the Zambia Petrochemical Energy Company (ZPEC), a joint venture between IDC and Fujian Xiang Xin Corporation of China.
He said a lot of progress had been made towards establishing the new US1 billion refinery in Ndola, with mapping completed and financial syndication almost closing.
“Once we have reached financial close, our EPC (Engineering, Procurement and Construction) will be on hand to begin the construction, which should happen in the next couple of months,” he said.
Mr. Muleya said the project was also in the final stages of resolving gaps in receipt and storage facilities for petroleum products, with negotiations under way with potential partners on facilities in Tanzania.
“We have already secured the sources of crude oil as well as offtakers of finished products,” he said. He added that partners had also already been identified to develop spin-off industries of Liquid Petroleum Gas bottling, bitumen production, as well as plastics industry, fertilisers and asphalt production.
Mr Muleya said the refinery is targeted to start operations in January 2028, initially processing 20,000 barrels of crude oil per day before scaling up to 60,000 barrels per day.
On Indeni Energy, Mr. Muleya said IDC had been resolving operational issues at the petroleum company. He reported that the company had been stabilised and had since returned to profitability. The next step, he said, would be to install a new Board and management to steer the company, so that it can help stabilise the supply of petroleum products in the country.
Mr. Muleya also outlined IDC’s plan to develop the hydrocarbon industry, including the exploitation of new coal tenements. He described the development of the hydrocarbon industry as the beginning of the industrialisation agenda, saying the new refinery would play a major role alongside a modern coal industry in securing the country’s energy future.
Hon. Chikote praised IDC for driving the refinery project and urged the Corporation to ensure it is completed. He described it as a project the country has been looking forward to, adding that the refinery and its downstream industries would bring many benefits to Zambia.
The Minister said President Hakainde Hichilema was keen for all important projects to be accelerated and implemented, and that the refinery was at the top of the agenda. He said the project was one way the new Ministry of Petroleum would contribute significantly to the Grow Zambia agenda.
The IDC delegation included IDC Chief Finance Officer Mr Raphael Chipoma, who doubles as interim Indeni Energy Board Chairperson; IDC Head of Investments (Manufacturing & Agriculture) Mr. Muza Mwanza; and CEO’s Executive Assistant Ms. Tasha Chongo.
