SacOil, South African government-owned pension fund (Public Investment Corporation, PIC) and Mozambique's state-run Instituto de Gestão das Participações do Estado (IGEPE) have partnered to study the construction of a 2,600-km gas interconnection pipeline between South Africa and Mozambique. The partners would fund the project, estimated at US$6bn. Mozambique has significant gas reserves (75 bcm of proved gas reserves but more than 5,000 bcm of gas resources in 2013). Gas could be produced in the giant Rovuma fields and exported to neighbouring Southern African Development Community countries, including South Africa, as part of its strategy to reduce the share of coal in its energy mix. Gas could replace coal or oil as a fuel in ageing power plants and could be used as a main fuel for new power projects. Gas demand is also driven by the Mossel Bay gas-to-liquids plant and by the Saldanha industrial development zone.