Name and Location
Transnational terrestrial gas pipeline and distribution facility, Mozambique to South Africa.

Client
SacOil, South Africa State-owned Public Investment Corporation (PIC) and Mozambique State-owned firm Instituto de Gestão das Participações do Estado (IGEPE).

Project Description
The project proposes to evaluate the technical and commercial feasibility of a 2 600 km transnational terrestrial gas pipeline and distribution facility, which will transport natural gas from Mozambique’s Rovuma fields to South Africa, with possible offtakes to other neighbouring Southern African Development Community member countries.

The project will be designed to make energy affordable for a greater proportion of the population, promote clean energy, reduce oil import bills, lower the region’s carbon footprint and reduce carbon tax.

Value
The proposed project is expected to cost about $6-billion.

Duration
Not stated.

Latest Developments
SacOil, the PIC and IGEPE have signed a joint development agreement (JDA) to evaluate the technical and commercial feasibility of the gas pipeline and distribution facility.

Under the JDA, effective from December 3, the partners will collectively initiate feasibility studies covering engineering; market development; gas purchasing; economic, financial, technical and commercial risk profiles; as well as environmental, social and regulatory issues, to evaluate the viability of project.

The partners are establishing a technical working group to start prefeasibility studies and a project company will be incorporated to ensure that focus on the project is maintained and that emphasis is placed on local ownership of businesses along the entire value chain.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
SacOil, tel +27 11 575 7232.
PIC, tel +27 12 742 3400, fax +27 12 346 3276 or email info@pic.gov.za.
IGEPE, tel +258 21 485643/4 or fax +258 21 497342.