South African Sasol and its partners in the Republic of Mozambique Pipeline Investments Company (ROMPCO) have announced a $210m investment in a second loop gas pipeline to be built by 2017 in order to increase the capacity of gas supplies from Mozambique to South Africa (SA), according to a report published by The Africa Report.
Sasol is seeking to expand its capacities by constructing a new pipeline of 127 km, which promises an increase to 212m gigajoules (GJ) per year. Currently, the completed 865 km long line, worth of $200m, is piping gas from Mozambique’s Temane gas fields to Sasol’s Secunda plant in SA, at the capacity of 188m GJ a year, Business Day Live quoted ROMPCO’s recent statement.
The investment reflects an existing shortfall in electricity supply that hurts businesses and deters investors. In response to the growing demand for gas, Sasol and Empresa Nacional de Hidrocarbonetos (ENH), the Mozambican state-owned oil company, have begun exploring news fields in search for gas reserves, in addition to Eni and Statoil that were also awarded a license for the offshore Angoche basin exploration.