Mozambican gas to help power S.Africa - CNBC Africa

Mozambican gas to help power S.Africa

Southern Africa

by Trust Matsilele 0

Mozambique gas pipeline Loop Line 1 completed. PHOTOS: wikipedia

The launch of a new gas pipeline in Mozambique could go some way in dealing with both the country’s energy shortage and that of South Africa's.

The Republic of Mozambique Pipeline Investments Company (ROMPCO), announced the completion of gas transmission capacity named Loop Line 1 that was built to transport gas to customers at the energy hub of Ressano Garcia in Mozambique.

ROMPCO is a joint venture between Sasol, Companhia Mocambiçana de Gasoduto S.A. and South African Gas Development Company (SOC).

The expansion in capacity enables the generation of more than 400 MW of power, which could power 320 000 households at Ressano Garcia and also enable further in-country monetisation of gas for Mozambicans.

The 865km gas pipeline runs from the central processing facility (CPF) at Temane in Mozambique to Secunda in South Africa.

(READ MORE: Multiple revenue sources expected from Mozambique gas industry)

The project involved the installation of a pipeline in parallel to its existing one. 

Loop Line 1 was also built to transport gas to customers in the Central Térmica de Ressano Garcia (CTRG) gas-to-power facility, the Matola Gas Company and Empresa Nacional de Hidrocarbonetos (ENH).

The joint venture owns the 865km 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,” added the statement.

Through an initiative aimed at maximising local content, the bare pipe was imported and then coated for corrosion resistance by a local supplier, Capital Star Steel, in Maputo which helped to skill and create employment for locals.

“We are working closely with the government of Mozambique to address the need for skilled citizens by investing in training and development programmes and by creating in-country employment opportunities and looking to source services and material locally for future expansion projects,” said Louis Bosch, managing director of ROMPCO.

(READ MORE: Sasol to develop Mozambique’s first GTL plant)

Bosch added that over the last decade, ROMPCO has contributed to the development of Mozambique and its people through 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,” he said.

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