Considering the country’s location having another fuel pipeline is a good business move and a strategic decision. Though the deal has not been sealed according to the Governing bodies a proposal has been sent in by the big company.
COVEN ENERGY LIMITED comprises a group of experienced engineers who focus on creative solutions for oil and gas infrastructure projects. Their experience includes conceptual and feasibility studies; regulatory, permitting and environmental approvals; engineering, engineering management and project management; construction and construction management; rehabilitation and rehabilitation management; and operations and maintenance
The proposal is now being assessed by the Zimbabwe Investment Development Authority (Zida).It entails that Coven Energy will form a joint venture (JV) company with state-owned National Oil and Infrastructure Company (Noic) to construct a second fuel pipeline linking Beira to Zimbabwe.
As part of a long-term plan, the company also wants to connect the pipeline to South Africa, Botswana, Zambia, Malawi, and the Democratic Republic of Congo (DRC).
The Coven deal would radically transform Zimbabwe into a regional petroleum hub, but effectively tilt the dynamics of the local industry largely dominated by Sakunda Holdings owned by businessman Kuda Tagwirei. Kuda Tagwirei happens to be on the US sanctions list on issues relating to corruption and misuse of power. However a decision has to be made and all wait.