New oil pipeline to link Southern Africa region

South sudan pipeline22 November 2013, Harare – Mining Oil and Gas Services, a South African-based company, intends to construct a multibillion-dollar fuel pipeline linking Beira and three Southern African countries through Zimbabwe, industry sources said.

MOGS is a black-owned BEE accredited company that focuses on providing various products and services to the mining, oil and gas services industry in South Africa and neighbouring countries. MOGS delivers the products and services through its specialist subsidiaries.

The group also offered to inject US$20 million in Trust Bank in exchange for a significant shareholding.

The proposed pipeline will start in Beira and run through Zimbabwe in Harare and Bulawayo. From Bulawayo, it will run south-west to Botswana and run north through Zambia to the Democratic Republic of Congo.

Sources said MOGS was purely an infrastructure company and does not itself trade in products such as fuel. The pipeline will be available for use by any trader so approved by the various governments.

The project would be implemented in phases, with the first stage involving the construction of Beira-Harare section at an estimated cost of US$1 billion.

The pipeline will run parallel with the Feruka oil pipeline linking Beira and Msasa fuel depot in Harare and will have capacity to move 500 million litres of fuel per month. The Feruka oil pipeline currently has a capacity to move 150 million litres per month.

Market sources say, MOGS, a diversified resource company, has already been given access in Mozambique and Zambia and the company is now seeking approval to construct the giant facility through Zimbabwe from the Government.

It is understood that once approvals are obtained from the Government, the construction of the section between Harare and Beira is estimated to take between 18 and 24 months. MOGS is also seeking approvals to use Zimbabwe’s fuel handling facilities in Msasa and if necessary,.

“Negotiations are underway to obtain approvals from the Government, but everything looks positive,” said one source. This would be a welcome development since this is likely to create thousands of jobs and bring in the much needed foreign direct investment.”

The investment, even if shared between Zimbabwe and Mozambique, would be among the biggest into the country in recent years.

Energy and Power Development Minister Dzikamai Mavhaire yesterday said there were many companies that have proposed to construct a second pipeline and his ministry was looking into the proposals.

“We have received a number of proposals and the ministry was looking into them,” said Minister Mavhaire.

– The Herald

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