Mozambique's state-run oil company PetroBeira has started building fuel storage tanks in the port city of Beira at a cost of $45 million (28 million).
The tanks, with a capacity of 80,000 m³, will store products derived from oil or biofuels, which would be sold to Botswana, Zimbabwe and the Democratic Republic of Congo.
'This is going to help Mozambique and other neighbouring countries effectively hit by fuel shortages,' CEO Casimiro Francisco says. PetroBeira began building the tanks in early April , and they will be completed in 14 months.
Last October, Mozambique approved a $510 million deal with London-listed Central African Mining & Exploration Company to build a plant to produce 120 million litres of ethanol a year by 2010. The government has said the raw material for the ethanol will be sugarcane planted over an area of 30,000 hectares in the southern province of Gaza.