Introduction

A Feasibility Study for Pipelines helps investors assess demand, routes, capacity, costs, risks, and returns. Africa needs more energy infrastructure to support growing fuel and gas demand. Pipeline projects can improve supply reliability and reduce transport costs. They can also connect production areas with refineries, terminals, power plants, and industrial users.

Pipeline projects require careful planning from the start. Route selection, land access, environmental approvals, safety, construction costs, and customer commitments affect project returns. Aviaan helps investors assess these factors through market research, feasibility analysis, financial modelling, and business planning. This approach supports stronger investment decisions.

Market Overview & Industry Insights

Africa's pipeline opportunity is linked to oil production, gas development, refining, LNG infrastructure, and energy demand. Several major projects are also improving regional connectivity. However, long construction periods and complex approvals can increase project risk.

• Africa's oil demand: Africa consumed about 4.70 million barrels per day of oil in 2025. OPEC expects demand to reach about 4.81 million barrels per day in 2026.
• African gas demand: The IEA expects Africa's natural gas demand to increase by about 25% by 2030, compared with 2023 levels.
• Nigeria–Morocco Gas Pipeline: The proposed pipeline is planned at about 5,600 km and is designed to connect Nigeria with Morocco and European markets.
• East African Crude Oil Pipeline: The EACOP is approximately 1,443 km long and is designed to transport crude from Uganda to Tanzania's port of Tanga.
• EACOP capacity: The project is designed for an initial throughput of about 216,000 barrels per day.
• Trans-Saharan Gas Pipeline: The proposed project is planned at about 4,128 km, with a design capacity of around 30 billion cubic metres per year.
• Mozambique gas infrastructure: Mozambique has several major gas projects that require gathering, processing, and transportation infrastructure. LNG projects such as Mozambique LNG have nameplate capacity of about 17.5 bcm per year.
• Pipeline investment need: The IEA identifies major infrastructure investment requirements across African oil and gas value chains, including pipelines, storage, and processing infrastructure.

The opportunity differs across South Africa, Nigeria, Kenya, Egypt, Morocco, Ghana, Ethiopia, Tanzania, Uganda, Zambia, Côte d’Ivoire, and Botswana.

Coastal markets may support export and import pipelines. Landlocked markets may benefit from pipelines that reduce dependence on road and rail transport. Each project needs its own route and demand assessment.

Go-To-Market Strategy

Aviaan develops pipeline market-entry strategies around route economics, customers, capacity, tariffs, and infrastructure.

• Market Entry Assessment – Identify priority corridors, demand centers, and feasible pipeline routes.
• Customer Segmentation – Map refineries, terminals, utilities, power plants, industries, and distributors.
• Pricing Strategy – Assess transportation tariffs, throughput fees, competing logistics costs, and customer pricing.
• Competitor Benchmarking – Compare pipeline capacity, tariffs, routes, utilization, and service models.
• Commercialization Planning – Develop contracting, capacity allocation, customer acquisition, and implementation strategies.

Feasibility Study for Pipelines

Aviaan evaluates pipeline projects through integrated technical, commercial, operational, and financial analysis.

• Demand Assessment – Forecast oil, gas, fuel, or product volumes across the proposed corridor.
• Route Feasibility – Assess distance, terrain, land access, crossings, environmental constraints, and population density.
• Technical Feasibility – Review diameter, pressure, pumping or compression systems, materials, terminals, and control systems.
• Operational Feasibility – Assess maintenance, monitoring, staffing, security, emergency response, and operating requirements.
• Financial Viability – Model CAPEX, OPEX, tariffs, throughput, cash flow, and project returns.
• Risk Assessment – Test construction, environmental, security, FX, demand, regulatory, and political risks.
• Investment Analysis – Evaluate NPV, IRR, payback, debt capacity, and funding requirements.

Pipeline capacity should match realistic demand. Oversizing can increase capital costs. Undersizing can limit future revenue.

Market Research for Pipelines

Aviaan uses market research to validate demand and commercial assumptions before major investment.

• Customer Analysis – Identify shippers, refiners, utilities, distributors, industries, and large-volume users.
• Competitor Intelligence – Benchmark existing pipelines and alternative transport systems.
• Market Sizing – Estimate addressable throughput by product, route, country, and customer segment.
• Demand Forecasting – Develop base, upside, and downside volume scenarios.
• Tariff Analysis – Assess pipeline tariffs against road, rail, marine, and other transport costs.
• Supply Chain Research – Map production fields, refineries, terminals, ports, storage sites, and demand centers.
• Opportunity Identification – Identify supply gaps, regional corridors, and infrastructure bottlenecks.

The research should also test customer willingness to sign long-term transportation agreements. Such commitments can strengthen project bankability.

Business Plan for Pipelines

Aviaan develops business plans that connect market demand with pipeline economics.

• Financial Modelling – Build CAPEX, OPEX, revenue, financing, tax, and cash-flow models.
• Revenue Projections – Forecast transportation income using throughput and tariff assumptions.
• Operational Planning – Define staffing, maintenance, control systems, security, and operating procedures.
• Funding Strategy – Assess equity, project debt, strategic investors, development finance, and public-private structures.
• Growth Planning – Develop phased capacity expansion based on demand and committed volumes.

The model should test construction delays and cost increases. It should also test lower throughput and tariff pressure.

How Aviaan Uses Primary Research

Pipeline projects depend on information that may not appear in public reports. Primary research helps close these information gaps.

Aviaan can conduct interviews with producers, refiners, terminal operators, utilities, industrial users, logistics companies, land stakeholders, contractors, and regulators.

Field research can assess route conditions. It can also identify infrastructure crossings, access issues, and nearby demand centers.

Supplier discussions can improve construction cost assumptions. Customer interviews can test expected volumes and contract preferences.

This research improves the feasibility report. It also creates stronger assumptions for the financial model.

Our Experience & Credentials

Pipeline projects require multidisciplinary consulting expertise. Commercial demand must align with engineering needs and financial returns. Aviaan can combine market research, feasibility analysis, business planning, and financial modelling for pipeline projects. The following are representative assignment types without confidential client information.

• Oil Pipeline Market Research – Nigeria – Assess crude movement, refinery demand, existing infrastructure, competing transport routes, and market opportunities.
• Gas Pipeline Feasibility Study – Tanzania – Evaluate demand, route economics, technical requirements, operating costs, and investment viability.
• Product Pipeline Business Plan – Kenya – Develop customer analysis, throughput forecasts, tariff assumptions, operating plans, and financial projections.
• Pipeline Financial Model – South Africa – Model CAPEX, OPEX, throughput, tariffs, cash flows, debt, and investment returns.
• Regional Pipeline Investment Advisory – Morocco – Assess cross-border demand, infrastructure requirements, commercial risks, and investment scenarios.

Conclusion

A Feasibility Study for Pipelines helps investors make informed infrastructure decisions. It connects demand, route selection, technical requirements, costs, financing, and project risks.

South Africa needs careful assessment of existing infrastructure and industrial demand. Nigeria has major opportunities linked to oil, gas, refining, and regional energy infrastructure. Kenya can benefit from pipeline infrastructure that supports fuel distribution and regional trade.

Egypt has a strategic position between African, Middle Eastern, and Mediterranean energy markets. Morocco is important for proposed regional gas connections. Ghana offers opportunities linked to gas-fired power and industrial demand.

Ethiopia requires careful assessment of regional supply routes and infrastructure costs. Tanzania has strategic importance for East African energy transportation. Uganda needs pipeline infrastructure that supports its emerging oil industry.

Zambia can benefit from infrastructure that improves regional fuel supply. Côte d’Ivoire has growing regional energy importance. Botswana requires detailed analysis of inland energy logistics and cross-border supply.

A successful pipeline needs more than technical feasibility. It needs reliable volumes, strong customers, efficient routes, clear regulation, and sustainable financing.

Aviaan can help investors evaluate these factors through structured market research, feasibility studies, and financial analysis. Contact Aviaan to assess the commercial and financial feasibility of your pipeline project.

FAQs

1. Why is a feasibility study important for a pipeline project?

It tests demand, route viability, construction costs, operating requirements, risks, financing, and expected returns.

2. What does a pipeline feasibility study include?

It can include route assessment, market research, technical analysis, CAPEX estimation, OPEX analysis, financial modelling, risk assessment, and investment planning.

3. How is pipeline project profitability assessed?

Profitability can be tested through throughput forecasts, tariffs, CAPEX, OPEX, cash flow, NPV, IRR, and payback analysis.

4. Which African countries offer pipeline investment opportunities?

Potential opportunities exist in Nigeria, Tanzania, Uganda, South Africa, Kenya, Egypt, Morocco, Ghana, Ethiopia, Zambia, Côte d’Ivoire, and Botswana. Each market requires project-specific analysis.

5. What is the biggest risk in pipeline investment?

Major risks can include construction delays, cost overruns, low throughput, land access, environmental issues, security concerns, regulatory changes, and financing challenges.

Related Service Pages

• Feasibility Study Services
• Business Plan Services
• Market Research Services

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