Phuzamoya – Eswatini Strategic Oil Reserves Facility has reached 28 per cent completion and is ahead of schedule, bringing the country closer to establishing a strategic fuel stockpile designed to protect the economy against supply disruptions.
Once completed, the facility is expected to store 80 million litres of fuel, comprising 40 million litres of diesel and 40 million litres of other fuel types. The reserve is intended to strengthen the country’s ability to maintain fuel supplies when international markets are disrupted or regional supply chains experience interruptions.
Construction of the Phuzumoya Strategic Oil Reserve Facility officially commenced in January 2026, following a formal groundbreaking ceremony presided over by His Majesty King Mswati III in April 2025.
The facility is expected to be fully completed by the end of 2028. Government and the contractor, Overseas Electrical Engineering Company (OECC) of Taiwan, are working under a strict 36-month construction timeline to complete the project without delays.
The progress was reported during a Cabinet Select Committee meeting held at the Ministry of Natural Resources and Energy boardroom, where Ministers and project stakeholders reviewed construction and discussed matters relating to the implementation of the project.
The meeting was attended by Minister of Natural Resources and Energy Prince Lonkhokhela Dlamini, Minister of Labour and Social Security Phila Buthelezi, and Minister of Public Works and Transport Chief Ndlaluhlaza Ndwandwe.
Representatives of the Eswatini National Petroleum Company (ENPC), project manager CECI Engineering Consultants and contractor Overseas Electric and Engineering Corporation Africa (OEE) also attended the meeting to assess progress and discuss the project’s implementation.
The facility is a strategic national investment intended to reduce Eswatini’s vulnerability to fuel shortages. As the country relies on imported petroleum products, disruptions affecting regional refineries, cross-border transportation or international supply chains can put pressure on the availability of fuel needed to keep the economy operating.
An operational reserve would provide a buffer during such disruptions, helping protect fuel-dependent sectors, including public transport, freight services, agriculture and businesses, from the immediate effects of supply interruptions.
The project could also strengthen the country’s preparedness for international oil market volatility. However, the extent to which reserves could cushion consumers against price increases would depend on how fuel stocks are purchased, managed and released, as well as the applicable fuel pricing arrangements.
During the meeting, the Ministers emphasised the importance of ensuring that emaSwati benefit from opportunities arising from the project, particularly through local participation and skills development.
In response, the contractor reaffirmed its commitment to strengthening local engagement and promoting skills transfer to emaSwati working alongside foreign nationals.
This commitment is intended to ensure that local workers gain valuable technical experience while contributing to the development of strategic national infrastructure.
Regular progress review meetings are expected to help identify potential construction challenges, monitor implementation and facilitate timely interventions where necessary.
With construction now reported at 28 per cent and ahead of schedule, the project marks progress towards establishing a strategic fuel reserve for Eswatini. Its ultimate contribution to national energy security will depend on completion, operational readiness and effective management of the stored fuel.
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