A MOZAMBIQUAN and South African consortium, Petroline Holdings, is planning to start construction of a $620-million oil pipeline linking Johannesburg to the port of Maputo before the end of this year. Mateus Kathupa, chief executive of state-run Mozambican company Petromoc, which holds a 40% share in the consortium, said recently that the construction of the petrol and diesel pipeline would take six months.
The 450-km pipeline, with a capacity of 3.5mcum/yr, will facilitate fuel imports via Mozambique's Maputo port, which is closer to Johannesburg than any of South Africa's major ports, including Durban."Our aim is to have this project up and running before 2010 in order to have an additional capacity in terms of oil supplies to South Africa," Mr Kathupa said in a recent interview.
Pipeline construction was originally scheduled to have started in September last year. Mr Kathupa said the delay was caused by problems in the approval of an environmental impact study, but he expected them to be resolved by May. "There are little issues to be ironed out, such as compensation of land to the people residing in the areas through which the pipeline will pass," he said.
Other stakeholders in the project include South Africa's Woesa Consortium, which holds 25%, and Gigajoule International, with 20%. Companhia de Desenvolvimento de Petroleos em Mocambique (CDPM), a Mozambican consortium of small- and medium-sized companies, holds the remaining 15%. Mr Kathupa said that "this is a very ambitious project that (will produce revenues of) over $800 million/yr from the pumping and distribution of oil in South Africa."