21 February 2010

Mozambique: Petromoc Signs Technical Assistance Agreements

Maputo — Mozambique's publicly owned fuel company Petromoc signed on Friday in Maputo agreements for project funding and technical assistance worth a total of 591 million euros (about 803 million US dollars).

The agreements were signed with the African Investment Fund, which is a California-based private investment company, and with the Romanian state company Transgaz, which operates Romania's natural gas transmission system.

Under Friday's agreements, the African Investment Fund will participate in funding a 650 kilometre pipeline between Mozambique and South Africa, and rehabilitation of the Petromoc storage tanks in the ports of Maputo, Beira and Nacala.

Under the agreement with Transgaz, the latter will provide technical assistance to Petromoc to implement projects that form part of the Petromoc expansion strategy.

According to the Petromoc Chief Executive Officer, Nuno de Oliveira, "these agreements are part of Petromoc's strategy to raise its capacity for domestic supplies and the expansion of the company to southern African markets".

He stressed that the new pipeline, starting in the port of Matola, will give South Africa a second route for importing liquid fuels, since the pipeline from the South African port of Durban is operating at maximum capacity.

As for the rehabilitation of the Beira and Nacala storage tanks, Oliveira said that the objective is to increase the capacity to store fuel in transit to landlocked countries (such as Malawi and Zimbabwe).

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