Mozambique, South Africa to build US$500 million oil pipeline
Wed, 25 March 2009
MOZAMBIQUE and South Africa are to begin construction in June of a $500-million pipeline to carry oil from Maputo to South Africa. Mozambique Petroleum Co CEO Casimiro Francisco said the work would take 18 months, and both countries have already granted licenses for the pipeline, which is to be constructed by Petroline RSA of South Africa.
The pipeline will carry 3.5bn li/yr of fuel and meet 25% of the fuel demand of the South African provinces of Mpumalanga and Gauteng. "We have already secured the $500 million required for the project, with 30% of this amount coming from stakeholders and the remaining 70% sourced from financial institutions where we already have guarantees," Mr Francisco said recently.