Zim agrees $1,3bn fuel pipeline with British firm

ZIMBABWE has signed a US$1,3 billion joint venture agreement with British-based Coven Energy to develop a fuel pipeline from the Mozambican port city of Beira to Harare, Information minister Monica Mutsvangwa has said.

Mutsvangwa said the pipeline would complement the existing one that also links Harare and Beira and make landlocked Zimbabwe a fuel hub for southern Africa.

“The pipeline will be built over four years at an estimated cost of US$1,3 billion. The partnership will be for a period of 30 years,” Mutsvangwa said during a post-Cabinet media briefing on Wednesday. Unlisted Coven Energy will form a 50-50 joint venture company with Stateowned National Oil and Infrastructure Company, she said.

Zimbabwe has struggled with acute shortages of fuel due to perennial shortages of foreign exchange but supplies have improved in recent months after the government allowed companies to sell the commodity in US dollars.

The Coven Energy team has had extensive experience of oil and gas infrastructure projects in many parts of the world including Africa, Europe, Middle East, US, Indonesia and Hong Kong.

It has undertaken projects in studies, engineering and engineering management, and project and construction management and design of terminal management system of management systems for large crude oils storage terminal including pipelines to the port in South Africa.

The company has also carried out feasibility studies inclusion engineering management for large multiproduct tank farm and associated pipelines and port infrastructure in west Africa.