Companies from Mozambique, China and South Africa build pipeline in Mozambique

2 March 2016

Public and private companies from Mozambique, South Africa and China signed a cooperation agreement that focuses on building a large diameter pipeline with a length of 2,600 kilometres costing US$6 billion, reported the South Africa’s SacOil.

The signatories of the agreement were the Mozambican state oil company ENH, Profin Consulting, a Mozambican private consortium, South African company SacOil Holdings Limited (SACOIL) and China Petroleum Pipeline Bureau, a subsidiary of the China National Petroleum Corporation (CNPC) specialized in building oil and gas pipelines.

This cooperation agreement, which aims to take advantage of the natural gas extracted in the Rovuma basin in northern Mozambique, includes construction of a pipeline between the producing region, Areas 1 and 4 of the Rovuma basin, and Gauteng, South Africa .

This pipeline will help South Africa to meet the growing demand for natural gas for electricity generation and will also supply regions of Mozambique along the route.

The countries of the Southern African Development Community (SADC) that would benefit from construction of this pipeline include Malawi, Zambia, Zimbabwe, Botswana, Lesotho and Swaziland. (macauhub/CN/MZ)