Pipeline construction set for Mozambique-South Africa pipeline

The US$6 billion 2600km natural gas pipeline from Mozambique to South Africa is set for construction. Part of the group entering into the deal with SacOil is the China Petroleum Pipeline Bureau (CPP).

The pipeline will transport natural gas from the Rovuma Basin, northern Mozambique to South Africa's Gauteng Province.

The CEO of SacOil, Dr Thabo Kgogo, believes the agreement between SacOil and CPP will make for fast and effective construction of the pipeline. He stated: “The agreement confirms the financing commitments required for the pre-investment and engineering studies phases of the project, and paves the way for its speedy and effective construction and implementation. The agreement brings together a wealth of expertise as a pre-investment consortium that will focus on bringing the project to bankability, assuring that a solid investor group is drawn from China, Mozambique and South Africa.”

The SacOil company added that the pipeline project will benefit Mozambique, by encouraging industrial growth, allowing for affordable energy, promotes clean energy as it reduces its carbon footprint, as well as reducing the countries oil imports. The company continued: “The project is also planned to contribute at regional level by improving Africa’s energy infrastructure landscape, support economic growth, increase the international competitiveness of southern African economies, create jobs and improve living standards.”

With regards to the length of the construction project, Kgogo explained: "For these kinds of studies, it typically takes about 18 months until a final investment decision is made. Construction would then take up to three years after that. We think that if we can have gas flow by 2020 it would be great."

Edited from various sources by Stephanie Roker

Sources: SacOil Holdings Ltd., Zitamar News, ESI Africa, All Africa, IOL

Read the article online at: https://www.worldpipelines.com/project-news/04032016/construction-set-for-mozambique-south-africa-pipeline/