The Moscow Times reported that Rosneft is looking to build USD 700 million oil products pipeline from Mozambique to Zimbabwe in an effort to expand its international reach. That would also mark the oil producer's first foray into pipeline construction overseas.
Mr Roman Trotsenko an adviser to Rosneft president Mr Igor Sechin said that “The new route seeks to compete with shipments to Zimbabwe by road from neighboring South Africa that supplement supplies through an existing pipeline which is working at full capacity. Gasoline prices here are among the world's highest."
Mr Trotsenko said that Rosneft expects to obtain construction permits and conclude the necessary agreements by the end of this year. The new pipeline from Mozambique's port of Beira to Zimbabwe's capital, Harare will presumably run alongside the current 700 kilometer link.
He said that the project also includes construction of a storage depot near Harare and a sea terminal in Beira. The terminal will come at an additional cost. The pipeline may later be extended to Zambia, Malawi and Botswana.
Rosneft announced its African ambitions after Zimbabwean Energy and Power Development Minister Mr Elton Mangoma said in August that the government planned a new pipeline to boost fuel imports. He said the project, which the parties involved hope to begin early next year, could be done by a consortium that includes the Mozambican government and private players.
The existing pipeline from Mozambique has a capacity of 130 million liters a month which amounts to 1.3 million tonnes or 9.8 million barrels per year. Zimbabwean officials said the new line would carry up to 300 million liters a month. Zimbabwe's consumption of oil products is about 5 million tonnes per year.
Mr Trotsenko said that Rosneft has some pipeline construction experience. It completed a major 550 kilometer pipeline that linked its Siberian oil field Vankor with the country's main pipeline network. The African project is a chance for Rosneft to win a new sales market.
Source - The Moscow Times
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