China to Pour US$6 Billion Into Pipeline
Chinese financial institutions are expected to invest US$6 billion in the construction of a proposed gas pipeline connecting northern Mozambique to South Africa.
The investment equates to roughly 70 percent of the project costs, according to research consultancy Africa House, and is backed by Chinese government commitment to develop energy resources in the region. The pipeline will cover a distance of 2,600 kilometers and will transport gas from the Rovuma offshore field.
The discovery of larger-than-expected gas reserves in Mozambique has created a range of opportunities for breakbulk operators in the sector and driven a flurry of investor interest in the country. The Mozambican government’s Gas Master Plan forecasts 10 liquefaction trains will be in operation by 2026, with an overall capacity of 69 billion cubic meters per year.
The International Energy Agency estimates that the Rovuma Basin, off the east coast of Mozambique, holds more than 100 trillion cubic feet of technically recoverable natural gas reserves, potentially making Mozambique one of the world’s top LNG exporters.
The new Chinese Rovuma pipeline will deliver gas to Gauteng in the north east of South Africa.
Photo: China will invest US$6 billion in the Rovuma pipeline. Credit: Wikimedia
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