Mozambique-South Africa oil pipeline planned

Thu, 25 September 2008

AS PART of an ambitious project that will help boost Mozambique’s economic growth, construction of a 500-km long pipeline to South Africa will begin at the end of the year. The pipeline will run from Mozambique’s capital Maputo to the Quendal region in South Africa’s Gauteng province, and construction will be carried out as a joint venture by Mozambican and South African companies. Mozambique’s state oil company, Petromoc, will have a 40% share in the $1.5-billion project.

Despite possessing large oil reserves, Mozambique has little oil-production capability. By transporting 6nb li/yr to Gauteng in South Africa, which is only a few hours' drive from the Mozambican capital, Mozambique expects to "boost the region's economic growth in the near future," according to Petromoc's managing director, Francisco Casimiro. Mr Casimiro said the pipeline could be extended to countries such as Botswana.