Project Profile
Value: US$8 billion (US$3 billion for the pipeline project and US$5 million for the detailed feasibility studies)
Location: from Cabo Delgado to Maputo, Mozambique
Capacity: unknown
Length: 2,100 kilometres
Start-up Year: -
A Memorandum of Understanding has been signed between Gigajoule International Ltd and Empresa Nacional de Hidrocarbonetos, the Mozambican state-owned oil and gas company, for the joint study and – if feasible – the construction of a 2,100 km pipeline from Cabo Delgado to Maputo and regional markets in Mozambique. Gigajoule and Empresa Nacionale de Hidrocarbonetos (ENH’s) relationship started in 2003 when they formed the Matola Gas Co (MGC) and developed the gas transmission and distribution network from Ressano Garcia to Matola. This network, which has now been in operation for nine years, is supplying gas to more than 30 industries, gas vehicles, and now also power stations. ENH recently started with the construction of a gas pipelines to domestic customers in Maputo.
Earlier, Gigajoule concluded pre-feasibility studies, evaluating the economic and technical feasibility of the North to South Gas Pipeline and the supply of LNG to the major markets in Mozambique. Based on this studies, Gigajoule and ENH decided to proceed with the feasibility study of the pipeline. A large-diameter pipeline connecting the northern gas discoveries with the energy needs of the south would have a dramatic impact on the economy of Mozambique and its neighbours. Adequate volumes of clean natural gas, delivered to critical areas, can alleviate major present and future power shortages in the region with minimum impact on the environment. Mozambican communities along the pipeline route will benefit by having gas available for public and agricultural transport and power generation. The cost of the pipeline project is estimated at around US$3 billion, and an estimate US$5 million would be spent to do the detailed feasibility studies. The study should be ready for presentation to the Mozambican Government by mid-2014. Construction work may begin in mid 2015.
Operators:
Gigajoule International Ltd
Empresa Nacional de Hidrocarbonetos (ENH)