Mozambique, Zambia sign MoU to build $1.5bn Beira-Ndola fuel pipeline

Mozambique and Zambia have signed a memorandum of understanding (MoU) for the construction of a pipeline to transport refined petroleum products, Pipeline Technology Journal reported on May 19. The two countries will jointly build the major fuel pipeline worth reported $1.5bn.

The agreement between Zambia and Mozambique was first announced on May 7 by the Mozambican President Daniel Chapo and was signed by the participants on the margins of the 11th Mozambique Mining and Energy Conference (MMEC).

“The pipeline will allow the transport of petroleum products to the Zambian market, reducing the circulation of trucks on the roads,” Chapo said during the event in Maputo, which brought together regional government officials, industry stakeholders and experts. The project, when completed, is anticipated to significantly ease road traffic and potentially lower transport costs for fuel to Zambia.

As stated by Chapo, the pipeline would have an annual capacity of 3.5 million metric tonnes, and would connect the port city of Beira in central Mozambique and Ndola, the largest city in Zambia, a country without direct access to the sea.

The detailed development plan for the Beira-Ndola pipeline project also involves building essential storage facilities at both the starting and ending locations.

“These milestones reflect not only the robustness of our reserves, but above all the environment of credibility, security and reform that we are consolidating in attracting the private sector to boost our economy,” Chapo said, as quoted by Club of Mozambique.