Page 12 - DMEA Week 27 2021

DMEA PIPELINES DMEA

British firm proposes

Zimbabwe fuel link

AFRICA UK-REGISTERED Coven Energy has proposed the short term.”
the construction of a $850mn fuel pipeline to Longer term, Coven would seek to connect
provide greater energy security to Zimbabwe, the pipeline to South Africa, Botswana, Zambia,
which is heavily reliant on the Beira-Feruka link. Malawi, and the Democratic Republic of Congo
The second link is seen providing a more (Kinshasa).
cost-effective alternative, through which around The mention of ‘conflicting interests’ presum-
90% of Zimbabwe’s fuel is supplied. ably refers to the delicate balance of power in
The addition of a second pipeline has been Zimbabwe’s energy sector. At present, sanctioned
under discussion since 2014, but little progress businessman Kuda Tagwirei’s Sakunda Hold-
was made as the plan was still being evaluated ings has a monopoly on fuel supply, while Africa
in Harare. In early 2019, several companies Confidential reported that Cove’s proposal “had
expressed interest in building such a conduit set [President Emmerson] Mnangagwa and his
under a project estimated to cost more than deputy [Vice President Constantino] Chiwenga
$1bn. on a collision course, with both powerful men
Zimbabwe has sought greater investment angling to safeguard their wealth and political
because the landlocked country has faced severe interests”.
shortages of petroleum products, partly caused Meanwhile, the source added: “The Feruka
by transport constraints and scarcity of foreign Pipeline does not have the capacity to supply the
exchange required to finance imports, leading to needs of the other Central African nations such
long queues at fuel stations. as Zambia, Botswana, Malawi and DRC, even to
Speaking to The Zimbabwe Mail, a source meet its Polokwane demand. So the justification
with close knowledge of Coven’s proposal said: for a second pipeline is clear. We need about 6mn
“This is a complicated and rather confiden- metric tonnes of fuel every year. Mabvuku is the
tial project given the conflicting interests. The logical centre to do that. The Coven Energy and
Feruka pipeline now is underutilised because it Noic proposal is in the process of being handled
is overpriced. The reason for that relates to the by [Zimbabwe Investment and Development
people who control the pipeline in Mozambique. Agency (ZIDA)] on behalf of the Government
This is something that has to be attended to in of Zimbabwe. It will be implemented as a JV.”™

P12 www. NEWSBASE .com Week 27 08•July•2021