Referring to the African Renaissance Project (ARP), Fortune Capital CEO Nhlanhla Magubane explains that the project is a 2 600 km cross-border terrestrial gas pipeline project, which will transport gas from the offshore and onshore basins to all Mozambique’s major cities, special economic zones and South Africa at a capital cost of $7-billion.
“The indispensable essence of this project is that it provides the potential for South Africa to have energy security, economic growth and development, as well as environmental sustainability. Currently, the project is in an exploratory phase and we are involved in project planning,” he says.
Magubane adds that Fortune Capital’s focus is mainly to ensure that the gas gets to South Africa so that it can stimulate the independent power producer (IPP) market, and the domestic and industrial markets.
“This project will be a game changer for the region, stimulating industrial growth, providing clean and affordable energy, and reducing carbon emissions.”
The prefeasibility study was finalised in February and the findings were positive and determined that the project is fundable, says Magubane. He notes that the final feasibility study started mid-year and will point the project towards the start of construction in about a year’s time.