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SacOil, ENH and Profin sign $6 billion agreement for pipeline in Africa

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Staff writer ▼ | March 2, 2016
An agreement for the estimated $6 billion, 2,600km pipeline to transport natural gas from Mozambique's Rovuma Basin to Gauteng in South Africa, has been signed.
South Africa pipeline
Energy transport   To make energy affordable in southern Africa
The agreement was signed between Empresa Nacional de Hidrocarbonetos (ENH), the national oil and gas company of Mozambique, Profin Consulting Sociedade Anónima, a Mozambican private sector consortium, SacOil Holdings and the China Petroleum Pipeline Bureau (CPP).

It is proposed that the 2,600km main pipeline from northern Mozambique to South Africa will, en route, deliver gas to key towns and settlements in all provinces of Mozambique, thereby stimulating industrial growth in the country.

The indicative gas requirements of, as well as benefits to, Mozambique and South Africa therefore justify such a pipeline.

The estimated $6 billion project is being designed to make energy affordable to a greater proportion of the population, promote clean energy, reduce oil import bills, lower carbon footprint and carbon tax. These are challenges experienced by South Africa and other economies in the region.

The CA Partners, including the PIC, believe that the project will be transformational to Africa's energy infrastructure landscape, as well as supportive of economic growth across the region.

The project will also seek to increase the international competitiveness of southern African economies, create a significant number of jobs and improve living standards for the people of the region.

SacOil's CEO Thabo Kgogo said: "The Mozambique gas project is central to the growth strategy of SacOil to become a leading Pan African oil and gas company. The inclusion of ENH and Profin strengthens our partnership with local Mozambican companies in the area of Oil & Gas and the Energy sectors.

"Additionally, the Cooperation Agreement with ENH, Profin and CPP is also in line with our strategy of developing strong strategic partnerships. We look forward to working with our partners to solve the energy demands of the SADC region.