SacOil, PIC and IGEPE sign agreement for feasibility studies on $6bn gas pipeline in Africa

The $6bn pipeline will transfer natural gas from Mozambique’s Rovuma fields into South Africa, with off-takes to other neighboring Southern African Development Community (SADC) countries.

Under the terms of the JDA, the team will jointly carry out project feasibility studies which will include engineering, market development, gas purchasing, economic, financial, technical and commercial risk profiles as well as environmental, social and regulatory issues.

Currently, a technical working group (TWG) is being set up by the partners to start pre-feasibility studies.

The South African government aims to reduce CO₂ emission levels as well as increase the use of natural gas.
Upon completion, the proposed 2,600km main pipeline will deliver gas to key towns and settlements in all provinces of Mozambique while promoting clean energy, reducing oil import bills, lowering carbon footprint and carbon tax in South Africa.

SacOil CEO Dr Thabo Kgogo said: "The Mozambique gas project is key for the economic transformation of Southern Africa."

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