Mozambique–South Africa Oil Pipeline

From Global Energy Monitor
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Mozambique–South Africa Oil Pipeline was a proposed oil pipeline in Southern Africa.[1]

The pipeline was planned to begin construction in 2009 and be commissioned in 2011, but appears to have been cancelled.

Location

The 500 kilometers (310 mile) long pipeline was to run from an existing coastal fuel-storage facility at Matola harbour in Mozambique to Nelspruit, Mpumalanga in South Africa. From there the pipeline will then continue to Kendal in Mpumalanga, where it could join the current Transnet Pipelines petroleum pipeline network.[2] The project also foresees potential transport to neighboring countries, such as Botswana.[3]

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Project Details

  • Operator: Petróleos de Moçambique (Petromoc, 40%) Gigajoule International, Companhia de Desenvolvimento de Petroleo de Mocambique, WOESA Consortium [1]
  • Current capacity: 100,000 barrels per day
  • Proposed capacity:
  • Length: 500 kilometers
  • Status: Cancelled
  • Start Year:

Background

The capacity of the pipeline was planned to be 100,000 barrels per day.[3][4] It is possible that the maximum capacity would be higher because of the high demand.[4][2][5][2] The pipeline is expected to cost US$620 million.[6] The construction will start in 2009 and the pipeline is expected to be operational by 2011.[4][6]

In August 2011, Petroline postponed construction of the pipeline. In a dispute over tariffs rates with the South African government, Petroline claimed that the government was creating conditions unfavorable to Petroline and overwhelmingly beneficial to state-owned company TransNet.[7]

As of 2017 there appears to be no news that the plant was commissioned, or that construction ever began.

Project company

The project is to be implemented by Petroline, a joint venture between Mozambican and South African companies. The biggest shareholder is Petróleos de Moçambique (Petromoc) with a 40% stake. Other shareholders are Gigajoule International (Pty) Ltd, Companhia de Desenvolvimento de Petroleo de Mocambique, and WOESA Consortium (Pty) Ltd.[2] Petrofac has an option to acquire 25%+1 share interest in the project.[5]

Articles and resources

References

  1. 1.0 1.1 Mozambique–South Africa Oil Pipeline, Wikipedia, accessed September 2017
  2. 2.0 2.1 2.2 2.3 Sheila Barradas (2007-07-06). "Pipeline project, Mozambique and South Africa". Engineering News (requires subscription). Creamer Media. Retrieved 2008-07-26.
  3. 3.0 3.1 "Work Set To Begin On Mozambique-South Africa Oil Pipeline". Downstream Today. 2008-07-25. Retrieved 2008-07-26.
  4. 4.0 4.1 4.2 Siseko Njobeni (2009-07-27). "South Africa Pipeline's Opening Put Off To 2011". Downstream Today. Retrieved 2009-07-28.
  5. 5.0 5.1 "Petrofac to Acquire Stake in Mozambique-South Africa Pipeline". Downstream Today. 2007-08-31. Retrieved 2008-07-26.
  6. 6.0 6.1 Janine Erasmus (2009-04-01). "New fuel pipeline for Moz and SA". International Marketing Council of South Africa. Retrieved 2009-07-28.
  7. Petroline postpones construction of oil pipeline linking Mozambique to South Africa, Macau, August 18, 2011

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