The National Energy Regulator of South Africa (Nersa) did not approve the Republic of Mozambique Pipeline Company’s (Rompco) $3.59/gigajoule tariff for gas that will be transported to South Africa during 2017, IOL reported.

The proposed rate would be used for gas transmitted from Mozambique’s Temane gas field via a new 127km-loop pipeline, due for commissioning in December 2016. Rompco transmits the piped gas sold by Sasol Gas to all piped gas users in South Africa, except those in KwaZulu-Natal. Therefore, this tariff would impact the total maximum gas price upon which prices paid by all piped gas users in South Africa is based, informed Money Web.

This is the first time Nersa’s been asked to approve a tariff for the gas infrastructure that is wholly located in Mozambique. The tariff for the existing cross-border gas pipeline (Mozambique-Secunda Pipeline / MSP) was agreed upon at an intergovernmental level through a prescribed formula. The new Loop-line 2 is connected and tied into this existing gas pipeline, increasing the capacity of the MSP.

Rompco is a joint venture between Sasol Gas at 50%, the Mozambican gas utility at 25%, and the remaining 25% stake owned by iGas, which is a subsidiary of the Central Energy Fund (CEF) and representative of the South African government, as well as  Companhia Limitada de Gasoduto (CMG).