The Energy Ministry has exclusively disclosed to the Zambian Business Times – ZBT that the feasibility studies for the establishment of the Angola-Zambia Oil Pipeline (AZOP) that will be used to transport refined multi product petroleum and natural gas from Angola to Zambia is scheduled to commence in September 2021.
Zambia and Angola on April 29 2021 signed the Inter-Governmental Memorandum of Understanding through the Ministries responsible for energy to facilitate the commencement of the establishment of AZOP.
The Angola -Zambia pipeline project which is expected to cost approximately US$5 billion is projected to supply 100, 000 to 120, 000 barrels per day of refined petroleum products along hubs from Lobito in Angola to Lusaka in Zambia when actualized.
The project is planned to be completed by January 31 2028, while the feasibility studies are expected to be concluded in two years due to the complexity and size of the project. Analysts have however appealed to the new government to review the timelines and see how this project can be delivered by 2026.
Ministry of Energy Permanent Secretary Veronica Mwiche told ZBT that the project proponents Basali Baliseli, a Zambian company is scheduled to commence the feasibility studies next month for a period of two years.
Responding to a press query by ZBT, Mwiche said project implementation would only commence after the feasibility study is completed and the outcome indicates viability. “When actualized, the pipeline is projected to supply 100, 000 to 120, 000 barrels per day of refined petroleum products along hubs from Lobito in Angola to Lusaka in Zambia.
“The pipeline is also envisaged to supply to other countries in the Southern African Development Community (SADC) region,” she told ZBT.
Mwiche said the project would be financed through a Public Private Partnership (PPP) model with equity agreements involving Basali Baliseli (private sector project proponents) and state financiers, Sonangol EP of Angola and Industrial Development Corporation (IDC) of Zambia respectively.
She said the AZOP pipeline is expected to supply natural gas to combined cycle Gas turbine plants for the production of electricity of combined minimum capacity of 2, 000 megawatts (MW) for the Angola and Zambia electricity markets as well as electricity markets in other countries within the region through the Southern African Power Pool.
Zambia has been procuring it’s Petroleum from the gulf region in the Middle East when is Western located Neighbour Angola has huge reserves. The country stands to benefit by lowering the cost of landed petroleum products by cutting off shipping and other middle men costs when the oil is imported from Angola.
