Zambia Sign Agreement with Namibia to Implement Historic Petroleum Pipeline
The New Dawn government has signed a Memorandum of Understanding (MoU) with Namibia regarding the development of the Namibia-Zambia Multi-Product Petroleum and Natural Gas Pipelines Project (NAZOP). The private sector development is set to supply 100,000 to 120,000 barrels of refined petroleum products per day.
The MoU represents both countries’ commitment to prioritising the petroleum sub-sector.
The Minister for Energy, Peter Kapala, explained; “Petroleum and its derivatives drive the engines of growth and development through the crucial role that they play in the production and transportation of goods and services. The NAZOP Pipelines system, when completed, is envisioned to supply 100,000 to 120,000 barrels per day of refined petroleum products in Namibia and Zambia. The NAZOP pipelines systems are also targeting supplying other countries in the SADC Region”.
As a member of the Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA), Zambia has preferential access to a neighbouring market of approximately 320 million people.
Given the volatility of international prices, significantly exacerbated by the Russian invasion of Ukraine, the Minister was keen to emphasise the importance of utilising the best available means to reduce the cost of delivering petroleum products to Zambia and its partners. This reduction in costs will not only benefit consumers but also businesses who use petrol in their production.
The Minister also commended Basali Ba Liseli Resources Limited (BBLR) for the proactive initiative they have shown in driving the project. The Zambian government has shown its willingness to promote cooperation between private and public sector initiatives. It is believed such partnerships are amongst the best means to efficiently deliver development for the nation. In April of this year, the government established a Private-Public Sector Forum to promote precisely this type of collaboration.
The New Dawn administration is particularly welcoming to foreign investment following the upgrade of its S&P credit rating in February this year. The MoU is the latest in a series of international partnerships being discussed by the Hichilema administration. Earlier this year Zambia and the Democratic Republic of Congo (DRC) signed a historical cooperation agreement to mine cobalt for use in batteries in electric vehicles. This partnership is set to firm Zambia's position in the global supply chain.
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