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Russia has tentatively agreed to the construction of a fuel pipeline in the Republic of Congo, according to a Russian government decree published on Monday (September 16). The pipeline will link the western port of Pointe-Noire to the capital Brazzaville, and will also pass through the town of Loutete, about 155 kilometers (96 miles) west of Brazzaville. The Republic has offshore oil and gas wells off Pointe-Noire.
Moscow said a joint venture to construct the pipeline would be set up with Russia controlling 90% of the entity. The technical and economic issues are set to be defined in a concession agreement. Russia has also agreed to provide the finance, equipment and personnel for the construction of the pipeline as well as the need for any on-going fuel supplies. The Republic of Congo is expected to agree to various tax relief measures to allow the building of the project, which is expected to provide Brazzaville with energy needs from the Republics own oil and gas reserves.
In short, the ROC government will receive a percentage of the transit income for no investment of its own, while the energy provided will help drive industrial and financial businesses in the capital city – spurring the Republic’s own economic development.
The agreement states that Russia’s Zakneftegazstroy-Prometey and Congo’s National Petroleum Company will be responsible for the implementation of the deal.
The Republic of Congo proven reserves of crude oil are estimated at 1.6 billion barrels, while earlier this year, it announced plans to start exporting liquefied natural gas, producing the first batch at the Marine XII project of the joint venture between Italy’s Eni and Russia’s Lukoil. The reserves of natural and associated gas in the country were estimated at 90.6 million cubic meters.
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