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SacOil, PIC sign energy MoU with Mozambique

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31 Mar 2014

SacOil, PIC sign energy MoU with Mozambique

JOHANNESBURG (miningweekly.com) – Independent oil and gas group SacOil and the Public Investment Corporationhave entered into a memorandum of understanding (MoU) with the Instituto De Gestão Das Participações Do Estado (IGEPE) aimed at regulating a long-term partnership that will look to develop Mozambique’s natural gas industry through the development of several long-term projects.

The agreement with IGEPE – an entity that managed investment portfolios and shares on behalf of the Mozambique government – would replace the “relationship” outlined in the expression of interest signed between the three parties on February 19.

The MoU was intended to regulate the relationship between the parties with regard to assuring the supply of natural gas, and energy security, and “opening up and growing” the industrial and domestic consumer market for natural gas across the country.

The agreement also laid the foundations for the establishment of joint venture (JV) companies that would build an onshore natural gas central processing facility, construct a pipeline to link the gas fields in Mozambique with potential customers in Southern Africaand develop the natural gas consumer market in South Africa and other Southern African Development Community member States.

The partnership would further look to establish ancillary projects, such as a gas-to-liquid plant and a combined cycle gas power plant.  

SacOil said in a statement on Monday that, importantly, all collaborations would be long-term projects that remained subject to feasibility studies, front-end engineering design, detailed engineering, market analysis, social-impact studies, the conclusion of JV agreements and the raising of the required funding.

Source: Engineering News