The proposed pipeline would have off-takes to other neighbouring Southern African Development Community countries.
SacOil has said that the South African Government has stated its objective to reduce CO2 emission levels and to increase the use of natural gas, with demand for natural gas expected to grow in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe due to the increase of gas-fired power station development, vehicle and related downstream industries and domestic consumption.
The joint development agreement (JDA) between SacOil and the Institute will evaluate the technical and commercial feasibility of the pipeline. The feasibility studies will cover engineering, market development, gas purchasing, economic, financial, technical and commercial risk profiles as well as environmental, social and regulatory issues.
The JDA partners are currently setting-up a technical working group to commence pre-feasibility studies. A project company will be incorporated to ensure that total focus on the project is maintained and emphasis will be placed on local ownership of businesses along the entire value chain.