Economy Energy Finance Gas Infrastructure Mozambique Natural Resources South Africa

Oil & Gas: Expansion of Mozambique pipeline to increase supplies to South Africa

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A new $210 million gas pipeline to be built by 2017 will see an increase in the amount of gas shipped from Mozambique to neighbouring South Africa.

With the addition of the new line, 212 million gigajoules of gas will be piped from Mozambique to South Africa per year, up from 188 million gigajoules a year now, the Republic of Mozambique Pipeline Investment Company (ROMPCO) said on Monday.

The project will be funded by petrochemicals company, Sasol, the Mozambican government and the South African government.

The new 127 km (79 mile) line will run parallel to the existing 865 km gas pipeline for only part of the way. The existing line runs from the Temane gas fields to Sasol’s Secunda plant in South Africa.

Sasol, which owns 50 percent of ROMPCO, said the natural gas is meant for, among other uses, heating in industries, re-selling to businesses and power generation.

Pretoria and Maputo each own 25 percent of ROMPCO through local firms. Africa’s most industrialised economy is facing a shortfall in electricity supply, that earlier this year resulted in frequent power cuts that hurt businesses and deterred investors.

Source: The Africa Report

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