SacOil Holdings has announced that it has signed a cooperation agreement with various firms for the construction of a $6 billion natural gas pipeline in Mozambique.
The announcement was made by SacOil’s CEO Dr Thabo Kgogo.
He defined the signing of the agreement as paving the way for speedy and effective construction and implementation of the natural gas project.
“It [the agreement] confirms the financing commitments required for the pre-investment and engineering studies phases of the project, and paves the way for its speedy and effective construction and implementation.
“The agreement brings together a wealth of expertise as a pre-investment consortium that will focus on bringing the project to bankability, assuring that a solid investor group is drawn from China, Mozambique and South Africa.”
According to the company, the 2,600km, large-diameter transnational terrestrial pipeline will transport natural gas from the Rovuma Basin, northern Mozambique to South Africa’s Gauteng Province, while delivering gas to key towns and settlements in Mozambique.
“The project offers numerous benefits to Mozambique as it stimulates industrial growth, makes energy affordable to a greater proportion of the population, reduces carbon footprint and emissions taxes as it promotes clean energy, and reduces oil imports,” the company added.
The project is also planned to contribute at regional level by improving “Africa’s energy infrastructure landscape, support economic growth, increase the international competitiveness of southern African economies, create jobs and improve living standards.”