Name and Location
African renaissance gas pipeline project, Mozambique.

Client
SacOil Holdings announced in December 2014 that it had entered into a joint development agreement (JDA) with the Public Investment Corporation (PIC) and the Instituto de Gestão das Participações do Estado (IGEPE).

The JDA set out the terms for an evaluation of the technical and commercial feasibility of building a gas pipeline and distribution facility intended to carry natural gas from Mozambique’s Rovuma fields to South Africa, with off-takes to other neighbouring Southern African Development Community countries.

SacOil in March reported that a cooperation agreement had been signed between the national oil and gas company of Mozambique – Empresa Nacional de Hidrocarbonetos (ENH), a Mozambique private-sector consortium Profin Consulting Sociedade Anónima, Chinese and international pipeline construction company China Petroleum Pipeline Bureau (CPPB), and SacOil.

Project Description
The project involves the construction of 2 600-km-long, large-diameter pipeline to transport natural gas from Mozambique’s Rovuma basin to Gauteng, in South Africa.
The project will include the construction of a gas processing facility.

The project is designed to make energy affordable to a greater portion of the population, promote clean energy, reduce oil import bills and a lower carbon footprint.

Value
$6-billion.

Duration
SacOil is hoping to start construction in 2018.

The pipeline to Gauteng could be completed within three years, making the gas delivery date between 2020 and 2021, depending in the final investment decision by the upstream operators.

The processing facility is likely to be completed with two to three years, offering SacOil and CPPB an opportunity to generate income through the supply of natural gas to markets near the Rovuma basin.

Latest Developments
The consortium aims to complete a prefeasibility study on the project in the next 18 months.

If the study concludes that the project is feasible, it will be progressed from a financing point of view.

Key Contracts and Suppliers
CPP (engineering, procurement and construction contractor).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
SacOil Holdings, Damain Matroos, tel +27 10 591 2260.
ENH, tel +258 21 42 94 56/67, fax +258 21 32 48 08 or email info@enh.co.mz.
CPP, tel +86 3162171812 or email cppmarket@cnpc.com.cn.