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Saturday, May 1, 2021

Zambia – Angola signs oil pipeline MoU

Economy Zambia – Angola signs oil pipeline MoU

Zambia and Angola have signed an Inter-Governmental Memorandum of Understanding on cooperation to facilitate private sector Development and Implementation of the Refined Petroleum Multi-Product and Natural Gas Pipeline Project (AZOP) which will stretch from that country to Lusaka.

Minister of Energy Matthew Nkhuwa who signed on behalf of the Zambian government described the MoU as a great milestone in facilitating the Angola-Zambia Oil Pipeline (AZOP) which has taken 10 years of negotiations.

Mr Nkhuwa speaking at the signing ceremony held at Sana Luanda Hotel said it was a great relief that both the Zambian and Angolan Governments had finally reached mutual agreement as reflected by the aspirations of the two countries in the MoU whose priority focus is on enhancing economic cooperation in the Petroleum sub sector.

“This Inter-Governmental Memorandum of Understanding symbolises our commitment to foster development in our two nations, particularly in the energy sector,” said the Minister.

Mr Nkhuwa underscored the importance of Petroleum and its by-products as they drive the engines of growth and development through the crucial role they play in the production and transportation of goods and services.

Mr Nkhuwa commended Basali Ba Liseli Resources Limited, the promotors of the project, for its proactive initiative to advance the petroleum and power sectors.

“I am confident that this initiative will provide a platform to further strengthen the bilateral relationship that exists between Angola and Zambia, especially, towards the provision of sustainable energy services. This initiative will also contribute to the realisation of the Southern African Development Community’s goal for enhanced regional economic integration,” Mr Nkhuwa noted.

He disclosed that once constructed the pipeline will be producing 100,000 to 120,000 barrels per day of refined petroleum products along hubs to be established in Angola and Zambia.

Mr Nkhuwa further added that the AZOP pipelines system will also have a gas pipeline expected to be supplying Natural Gas to Combined Cycle Gas Turbine Plants to be located in Angola and Zambia for the production of electricity of a combined minimum capacity of 2,000 Mega Watts for the Angolan, and Zambian electricity markets.

Mr Nkhuwa went on indicate that the project is also expected to employ about 12,500 to 14,500 local people in Angola and Zambia during construction.

“The Pipeline system shall include Single point Moorings, Gas receiving terminals, inlet tank facilities, hubs, pump stations, a main terminal, and Combined Cycle Gas Turbine Plants, as well as a fibre-optic cable system. Once operational, the project will have the capacity to employ in excess of 4,000 Zambian and Angolan nationals, combined,” he said.

The Minister called for the further need to invest in the petroleum sector to meet the growing demand and enhance security of supply given the growth in economic activities in the region.

“Despite this appreciable progress, there is still need for more investments in order to meet the growing demand for sustainable development in various regions of our countries. We recognise that one player, let alone Government, cannot drive this agenda for sustainable development on its own.

“Accordingly, there is need for conceited efforts from all stakeholders and the private sector will play a key role in harnessing the oil and gas potential of not only Zambia and Angola but the region as a whole,” he said.

And Angolan Minister of Mineral Resources, Petroleum and Gas who signed on behalf of that government, Diamantino Azevedo, said his government was happy to partner in facilitating the project whose feasibility studies once conducted will determine the cost of the project and when actual construction will commence.

Mr Azevedo said the benefits from the project will enhance economic cooperation and improve the lives of the people.

The Minister said Angola was positioning itself to become a major gasoline supplier in the SADC region following its heavy investment in constructing terminal oil reserves in strategic regions of the country.

Mr Azeveod said the country has capacity to meet its fuel demand and that of the region hence the cooperation of the oil pipeline which will be undertaken by the governments.

And Zambian Ambassador to Angola Lawrence Chalungumana, expressed happiness with the signing ceremony as it showed the country’s growth in their bilateral relations.

The Envoy said the countries were also exploring further cooperation in other sectors especially in road construction and agriculture which he disclosed has resulted in the construction of the Jimbe road where a contractor has since been identified on that country’s side which once completed will link Angola to Zambia through North Western province.

Mr Nkhuwa and his delegation has since returned from Angola following last night’s signing ceremony of the MoU.

17 COMMENTS

  1. Waste of time and resources. Who is going to foot this bill.

    We have a debt of $27 billion that needs to be paid. No structures put in place of how to pay this off. With COVID pandemic the convict thinks debt will be written off.

    In the mean time money is printed and distributed around the country as if it’s normal.

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  2. @3 Mayo Mpapa.
    YOU ARE RIGHT. EVEN ME I WONDERED IF THIS IS NOT THE SECOND TIME THIS MoU IS BEING SIGNED. I THOUGHT IT WAS SIGNED BEFORE.
    @2 SCOUSER. THIS IS A PUBLIC INTEREST MoU AND THEREFORE IT IS THE PUBLIC THAT ARE GOING TO PAY FOR THIS PROJECT. ELSE, IT WILL BE PAID BY COMPANIES WITH SERIOUS INTEREST TO DEVELOP IT.

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  3. Since the pipeline is meant to carry refined petroleum products to Zambia, why not let it terminate in Mongu or Kaoma? This will take the much-needed development away from Lusaka. This would also save on capital expenditure for the project.

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  4. Another eleventh hour gimmick to hoodwink Zambians! I wonder why Nkhuwa is talking as though the discussions were to cement and inaugurate the pipeline project when this was another round of “non – binding intent” agreement which has seen repetitive MOU signings! TAZAMA pipeline is sickly and the government wants to cheat the nation on what is never to happen in the lifetime of many of us! The Saudi Arabia cheap oil that had been negotiated and promised to the nation by President Lungu would bring down the cost of gasoline to K5.00 per liter is yet to be materialized! It would have made sense to me if it was something to do with TAZAMA pipeline between Tanzania and Zambia that would have thrashed out its challenges giving a timeline it would have improved efficiency!

  5. Mon 19 Nov, 2018 – The Zambian and Angolan governments have entered a USD5bn memorandum of understanding for a cross-border oil pipeline project. The project envisages enhanced oil trade, development of petroleum refinery infrastructure and capacity building for Zambia. Zambia indicated the project value in a preliminary phase of studies. (Source: Fitch Solutions / Infrastructure & Project Finance / Angola )

    You wonder how many MOUs these comedians are going to sign ….

  6. APRIL 12, 2012 – Zambia firm to build oil pipeline from Angola
    By Reuters Staff
    * Pipeline to facilitate exports
    * Refinery to produce 200,000 barrels/day
    LUSAKA, April 12 (Reuters) – A Zambian registered company plans to build a pipeline from oil-rich Angola to Lusaka after a refinery is completed in Angola, Zambia’s investment promotion agency said on Thursday.

  7. Nov. 3, 2016 — The on-again off-again 1400 km Angola-Zambia Refined Petroleum Multi- Product (AZOP) Pipeline will be the highlighted during talks between Angola and Zambia this month.

    This story always appears around election time.

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  8. These are Lazy Lungu’s tactics I mean his govt is so broke it hasn’t even got money to repay its colossal loans where is it going to 1-5 billion dollars?

  9. This project is possible as a long term solution to the petroleum sub sector in Zambia. Its long term because of the amount involved and many other technicalities. I also note that the govt is fade up with perpetual crude oil debts as indicated by our minister.

    The short term measure is for govt to come out of crude procurement and throw the challenge to Indeni to procure crude, process, sell and report a profit without increasing fuel pump prices abnormally. Relying on Truck drivers shud be the shortest measure which the govt shud review soon.

  10. Should we be investing this much in fossil fuels with all the global climate change concerns. Other countries are busy investing in renewable energies as it is the next big thing….

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