South Africa, Mozambique study $6-billion natural gas pipeline

By PAUL BURKHARDT
Bloomberg

South African and Mozambican state-owned investment companies have joined with SacOil to study a $6 billion pipeline from a natural-gas field off the northern coast of Mozambique.

They will evaluate the technical and commercial feasibility of developing a 2,600-kilometer (1,616 miles) pipeline to supply the region, the Public Investment Corp., the Instituto de Gestao das Participacoes do Estado and Johannesburg-based SacOil said in a joint statement today.

The pipeline will en route to South Africa “deliver gas to key towns and settlements in all provinces of Mozambique,” according to the statement.

The field being developed offshore from Mozambique’s Cabo Delgado province by Anadarko Petroleum and Eni is the largest natural gas find in a decade.

It could make Mozambique the world’s third-largest exporter of liquefied natural gas, or LNG, after Qatar and Australia, with deliveries targeted from 2018.

The PIC manages the pension funds of South African workers.

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