Oil pipeline between Mozambique and South Africa ready in 2009

12 December 2006

Maputo, Mozambique, 12 Dec – The oil pipeline linking the Matola refinery in Mozambique to Nelspruit, in South Africa, is due to be operational in 2009, the chief executive of Mozambican state oil company, Petromoc said in Maputo last week.

The concession for construction and operation of the pipeline, which has an estimated cost of US$537 million, for an initial 25-year period that is renewable for a further 25, was granted last week to the Petroline Holdings consortium, said Casimiro Francisco.

The chief executive of Petromoc added that 2007 would be used to move ahead with engineering and financial engineering projects and that the pipeline would begin to be built in 2008 and take between 12 and 14 months to finish.

Petroline Holdings is 40 percent owned by Mozambican state oil company Petromoc and three private companies, two of which from South Africa (Gigajoule and Woesa, with 25 and 20 percent, respectively), and the remaining 15 percent is in the hands of Mozambican organizations.

This project, which runs for 400 kilometers from Matola to Nelspruit, could later be expanded as far as Witbank, a city halfway between Johannesburg and Nelspruit.

The pipeline, which will be 30 centimeters in diameter, can carry 5 million tons of gasoline and diesel per year, and the project includes refurbishing two refinery tanks with a 200,000 cubic meter capacity. (macauhub)