South Korean firms agreed to an engineering consortium to build a 176 mile oil pipeline in Cameroon, the Dow Jones Newswires reported. The chief of Petroleum Products S.A. and Cameroon's energy and water minister Basile Atangana Kouna signed a memorandum of understanding for the project June 6.
Financial details of the project weren't disclosed to the public. According to the Dow Jones Newswires, the pipeline is scheduled to run from Limbe, the country's southwestern Atlantic port city and where the government's only refinery is located, to the cities of Bafoussam and Bamenda.
After a number of cross-border smuggling incidents from Nigeria and Gabon, the source said Cameroon currently lacks the necessary infrastructure it needs in order to distribute fuel to the country's filling stations.
"This project will enable the government to cut spending on fuel transportation," said the group's spokesman, Godbless Eruani Azibapu.
Victoria Oil and Gas is one of the firms financing construction of the pipeline.