Mozambique: Qatar company prepares to build oil pipeline between Beira Malawi

11 February 2009

Maputo, Mozambique, 11 Feb – The Venessia Petroleum company of Qatar has been contracted to build an oil pipeline between the port of Beira in Mozambique, and Malawi, according to the most recent edition of Engineering News.

In 2006 an agreement was signed between the government of Malawi and the Venessia group to develop the Malawian energy sector and build fuel deposits as well as the pipeline.

The economic pre-feasibility study for the project has been concluded and the Malawi Energy Minister, Ted Kalebe, said that the government had been given guarantees that the engineering survey would before the end of this year.

The oil pipeline will link the port of Beira to Nsanje, in southern Malawi, where the fuel deposits will be built.

The Venessia group committed to investing US$150 million in this project, but the agreement requires Malawi to sign contracts to acquire oil from Qatar.

Currently, most of the fuel used in Malawi travels from Beira or Dar es Salaam by truck and transport via an oil pipeline would allow the Malawian authorities to reduce the price of fuel.

According to Venessia’s plans, the deposits that will be built in Nsanje would guarantee 90 days of fuel supplies to Malawi, as compared to a current storage capacity of 15 days. (macauhub)