Sasol : Mozambique gas pipeline in US$210 million expansion

The Republic of Mozambique Pipeline Investments Company (ROMPCO) announced that it will expand the capacity of the existing 865 km of gas pipeline from the Central Processing Facility (CPF) at Temane in Mozambique to Secunda in South Africa. The project involves the installation of a pipeline parallel to the existing pipeline, from scraper station 1 (STS1), which is about 128 km from the CPF, over a length of 127 km where it connects back into the main pipeline at scraper station 2.

Named Loop Line 2 (LL2), the US$210 million expansion project further increases ROMPCO's gas transmission capacity. Planned to come into operation early in 2017, it will initially transport gas to South Africa, but will be able to serve additional markets in Mozambique and South Africa, as gas becomes available. Loop Line 1, which runs from CPF up to STS1, was commissioned in December 2014.

ROMPCO is a joint venture between Sasol, Companhia Mocambiçana de Gasoduto S.A. and South African Gas Development Company (SOC) Limited (iGas). It owns the pipeline through which the gas purchased from Mozambique is transported to South Africa and to Ressano Garcia in Mozambique. It is a cornerstone of the natural gas project that saw Mozambican gas monetised for the first time. The project has become a global benchmark in multilateral, cross-border public-private partnerships with significant benefits to all stakeholders.

During the construction phase of LL2, the project will create employment opportunities for approximately 700 Mozambicans, largely from communities in close proximity to the project.

'As we continue to invest in Mozambique, this project further deepens our commitment to skills development, while creating employment opportunities through our activities,' said Louis Bosch, General Manager of ROMPCO.

Among other areas, training will be conducted on the operation of general earth moving equipment (graders, excavators, tippers, etc.), as well as hand grinders and brushers. It will include pipe stringing, steel fixing and concrete mixing plus casting, installation of fibre optic ducting and mine sweeping. In addition, people were also trained as class X70 welders' assistants and team leaders.

Loop Line 1 was completed in 2-million working hours and without any significant safety incidents during construction. The US$200 million Loop Line 1 project, and US$210 million Loop Line 2 project demonstrates ROMPCO's commitment to investing in the development of Mozambique's infrastructure and using local suppliers. These projects are aimed at addressing the increasing energy demands of the rapidly expanding Mozambican economy - one of the fastest growing on the African continent - which is seeing electricity demand growing by approximately 14% annually.

'Over the last decade, ROMPCO has contributed to the development of Mozambique and its people through enabling the monetisation and utilisation of gas. We continue to prioritise programmes and strategic partnerships aimed at improving the quality of life for the people of Mozambique and unlocking further socio-economic development in Mozambique,' said Bosch.