Mozambique–South Africa Oil Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.

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Mozambique–South Africa Oil Pipeline was a proposed oil pipeline in Southern Africa.

The pipeline was planned to begin construction in 2009 and be commissioned in 2011, but appears to have been cancelled.

Location

The 500 kilometers (310 mile) long pipeline was to run from an existing coastal fuel-storage facility at Matola harbour in Mozambique to Nelspruit, Mpumalanga in South Africa. From there the pipeline will then continue to Kendal in Mpumalanga, where it could join the current Transnet Pipelines petroleum pipeline network. The project also foresees potential transport to neighboring countries, such as Botswana.

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Project Details

• Operator: Petróleos de Moçambique (Petromoc, 40%) Gigajoule International, Companhia de Desenvolvimento de Petroleo de Mocambique, WOESA Consortium
• Current capacity: 100,000 barrels per day
• Proposed capacity:
• Length: 500 kilometers
• Status: Cancelled
• Start Year:

Background

The capacity of the pipeline was planned to be 100,000 barrels per day. It is possible that the maximum capacity would be higher because of the high demand. The pipeline is expected to cost US$620 million. The construction will start in 2009 and the pipeline is expected to be operational by 2011.

In August 2011, Petroline postponed construction of the pipeline. In a dispute over tariffs rates with the South African government, Petroline claimed that the government was creating conditions unfavorable to Petroline and overwhelmingly beneficial to state-owned company TransNet.

As of 2017 there appears to be no news that the plant was commissioned, or that construction ever began.

Project company

The project is to be implemented by Petroline, a joint venture between Mozambican and South African companies. The biggest shareholder is Petróleos de Moçambique (Petromoc) with a 40% stake. Other shareholders are Gigajoule International (Pty) Ltd, Companhia de Desenvolvimento de Petroleo de Mocambique, and WOESA Consortium (Pty) Ltd. Petrofac has an option to acquire 25%+1 share interest in the project.