Home East Africa Mozambique Government oil pipeline plans still on cards

Mozambique Government oil pipeline plans still on cards

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  • Mozambique Government’s plans to construct the overdue oil pipeline from either Beira or Nacala in Mozambique to Blantyre are still on the cards, according to the Ministry of Energy.

Mozambique Government’s plans to construct the overdue oil pipeline from either Beira or Nacala in Mozambique to Blantyre are still on the cards, according to the Ministry of Energy. The government is in search for an investor to construct the pipeline with a storage facility based on Build Own Operate and Transfer (BOOT) arrangement. The Ministry has been scouting for an investor since 2010 to conduct feasibility study, design and construct the pipeline from Beira-Nsanje in Malawi with a storage facility under the build own operate and transfer (BOOT) arrangement.

Most of the oil marketing companies are headquartered with fuel storage facilities in Beira. On completion, the project is expected to offer fuel security for Mozambique. Mozambique enjoys the prospect of expediency in the hauling process, reduced landing costs as compared to road and railway hauling means.

The Ministry has not given the estimated cost of the project. However, a projection by Word Bank reveals that the estimated cost for constructing a petroleum pipeline in Sub-Saharan Africa is roughly around $64,300 per inch-km adjusted for terrain and labour costs.

Also read

https://trendsnafrica.com/mozambiques-growth-prospects-intact/

https://trendsnafrica.com/eurocam-urges-mozambique-to-start-dialogue-with-europe-to-supply-gas/

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