Zimbabwe and Zambi Ink Deal for New Oil and Gas Pipeline System

Oscar J Jeke - Zim Now Reporter

The Governments of Zimbabwe and Zambia have signed a Memorandum of Understanding (MoU) to facilitate the development and implementation of a new oil products and natural gas pipeline system, Cabinet announced yesterday.

The pipeline project aims to transport refined petroleum products from Zimbabwe to Zambia, leveraging Zimbabwe’s existing capacity for oil and gas storage, processing, and transportation, alongside Zambia’s growing demand for affordable and efficient energy.

Zimbabwe’s current fuel supply relies heavily on the Beira-Harare pipeline, also known as the Beira-Feruka pipeline, which transports fuel from the Port of Beira in Mozambique to Feruka and onward to the National Oil Infrastructure Company depots in Harare, Bulawayo, Mutare, and Beitbridge. This pipeline is crucial for meeting the country’s energy needs and is currently undergoing upgrades to increase its capacity from 2.19 billion liters to 3 billion liters initially, with a target of 5 billion liters.

Alongside this, the Coven Energy project is proposing a new pipeline designed to further increase capacity and position Harare as a regional distribution hub, boosting Zimbabwe’s role in regional energy supply chains.

NOIC plays a central role in managing the country’s fuel supply chain, including storage, handling, and distribution of petroleum products as well as liquefied petroleum gas through its NOIC GAS division.

The new pipeline agreement between Zimbabwe and Zambia is expected to complement these existing infrastructures by providing a more efficient and reliable route for fuel transport. Transporting fuel by pipeline is projected to reduce reliance on fuel tankers on the roads, decreasing damage to road infrastructure and improving safety.

Beyond fuel transportation, Zimbabwe is also actively exploring oil and gas resources within its borders, notably the Mukuyu Oil and Gas Field and other discoveries in the Cabora Bassa Basin.

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