Mozambique in $210 million gas pipeline expansion to increase capacity

ROMPCO the Republic of Mozambique Pipeline Investments Company has said  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 a joint venture between Sasol, Companhia Mocambiçana de Gasoduto S.A.  and South African Gas Development Company (SOC) Limited (iGas) owns the pipeline through which the gas purchased from Mozambique is transported to South Africa and to Ressano Garcia in Mozambique.

The joint venture is the first monetized natural gas project in Mozambique is expected create employment opportunities for approximately 700 Mozambicans, largely from communities in close proximity to the project during the construction phase of LL2.

“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 at a cost of $200 million.

These projects are aimed at addressing the increasing energy demands of the rapidly expanding Mozambican economy 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.

South Africa plans to convert an array of ageing coal-fired power stations to gas as well as build new stations in Coega and Richards Bay as country’s government plans to reduce CO2 emission levels and to increase the use of natural gas from the current 3 percent to near the global average of 21 percent.