Petroleum Products Pipeline SA won first fuel pipeline
The Petroleum Products Pipeline SA (3PL SA) has been awarded the construction of the first fuel pipeline in Cameroon.
The Petroleum Products Pipeline SA is a joint venture between African investors let by the West Africa Investment Corporation (WAICO SA) and South Korean companies.
WAICO SA is already active in Cameroon in operating the MRS network of gas stations bought from Shell and covering the whole Cameroon for the transportation fuels distribution.
Until now the gasoline, diesel and other fuels are transported across the country by trucks at high risks and costs on the roads.
This high transportation costs are then highly subsidized by the Cameroon Government to make the gasoline price affordable for the inhabitants daily life.
By comparison, the construction of the fuel pipeline should divide by six these transportation costs across the country.
Therefore this Cameroon fuel pipeline project will interconnect the main Cameroon cities.
With 284 kilometers length, this fuel pipeline project will start from Limbe on the Gulf of Guinea to Bafoussam on the northeast, then to Bamenda on the north in direction to Nigeria.
This Fuel Pipeline project will connect the SONARA refinery in Limbe to storage tanks farms to be built for the local distribution on the north of Cameroon.
After signing this agreement between WAICO and its partnes from Nigeria and South Korea with the Cameroon Government the construction of this $300 million capital expenditure pipeline is expected to start on early 2014.
Govind Development to work on Yaounde oil pipeline
The Houston-based Govind Development Plc. (Govind) is leading a group of US investors, such as Richter International Trade Finance Consulting (Richter), interested in the Limbe to Yaounde oil pipeline.
Having secured the construction of the first pipeline with Petroleum Products Pipeline SA to link Limbe to Bamenda, the Cameroon Government is looking for other partners to finance the construction of a pipeline system to connect the lonely refinery in Limbe to the main cities of Yaounde, Kribi, and Douala.
This second oil pipeline project should be 377 kilometers long to supply Yaounde from Limbe in passing by Douala and Edea.
This Yaounde oil pipeline is estimated to require $1 billion capital expenditure.
To cover this investment, Govind Development and its partner Richter International are proposing a lease contract based on 30 years operations.
In respect with the major savings that the Cameroon Government may collect in return of these oil pipeline projects across the country, Govind and Richter are confident to sign a memorandum of understanding (MOU)with the Government on the second half 2013.
