Petroline plans to build pipeline between Mozambique and South Africa

13 October 2006

Maputo, Mozambique, 13 Oct – Petroline Holdings has requested permission from Mozambique to build an gasoline and diesel pipeline from Maputo to Nelspruit in South Africa, representing an investment of some 1.7 billion rand (US$222 million), the company said.

Petroline, which is owned by Mozambican state oil company Petromoc and three private companies, two of which form South Africa, put forward a request to the Mozambican sector regulator to build the pipeline, which will transport 1.5 billion liters of fuel.

According to the director of Petroline, Johan de Vos, the province of Mpumalanga in eastern South Africa north of KwaZulu-Natal and bordering Swaziland and Mozambique, would consume all the fuel transported from Maputo to Nespruit, the provincial capital.

De Vos said that after the regulator approved the pipeline, Petroline would negotiate its taxation framework and after that an environmental impact study would be carried out.

The pipeline will have a diameter fo 50 centimeters and will be buried a meter below the ground. Construction would take two years, De Vos said.

The four shareholders of Petroline are the Woesa Consortium (Women in Oil and Energy SA), Gigajoule International, state companies Petromoc and Companhia de Desenvolvimento de Petróleo de Moçambique and a group of small Mozambican investors. (macauhub)