Mozambique: Construction of oil pipeline to South Africa begins in June

12 February 2008

Nelspruit, South Africa, 12 Feb – Construction of the pipeline to carry oil from Mozambique to South Africa will begin in June, an official from the company carrying out the environmental impact study said.

Alfgonso NIemand, director of Nature & Business Alliance Africa said that construction would take 18 months and cost 3 to 4 billion rand.

“Construction will begin as the environmental impact study is approved by the South African Department of Energy and Mines,” Niemand said.

Nersa (the energy sector regulator in South Africa) granted a license for construction of the pipeline to oil company Petroline RSA on 29 March of last year having accepted the Mozambique-South Africa option instead of the Durban-Johannesburg option as it was cheaper.

The pipeline will carry 3.5 billion liters of fuel per year and meet 25 percent of the fuel demand of the South African cities of Mpumalanga and Gauteng.

The project will be jointly organised by oil companies Petroline RSA, of South Africa and Petroline SARL, of Mozambique.

The government of Mozambique has already approved construction of the pipeline. (macauhub)