Petroline postpones commissioning of product pipeline

Petroline Holdings delayed commissioning its 448-km products pipeline from Mozambique to South Africa due to global financial turmoil and an interest in expanding its capacity.

Aug 5th, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 5 -- Petroline Holdings delayed commissioning its 448-km products pipeline from Mozambique to South Africa due to global financial turmoil and an interest in expanding its capacity.

The 12-in. pipeline was to start operations in third quarter 2010 but has been rescheduled to early 2011.

Its original capacity was 3.5 million l./year of fuel, but this could be boosted to 5.9 million l./year as the pipeline aims to relieve the diesel shortage in Gauteng and meet future demands in South Africa via imports from Mozambique.

The route will run from Matola Harbour in Mozambique via Nelspruit and onward to Kendal in Mpumalanga, South Africa. Petroline Holdings also plans to construct a 30,000 cu m storage depot near Nelspruit. The depot will include storage tanks, diesel storage tanks, and offloading facilities.

South Africa’s demand is expected to outstrip supply this year because of the country’s economic growth.

Construction was scheduled to start in mid-2008 and to be completed within 18 months. The company hopes to see a reduction in the $620 million cost of the project given the economic downturn.

Contact Uchenna Izundu at uchennai@pennwell.com.

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