An official sod-turning ceremony on Wednesday marked the start of construction of a pipeline to pump natural gas from Mozambique to South Africa.
The ceremony, performed by Mpumalanga premier Ndaweni Mahlangu, took place at Badplaas.
”The project will bring natural gas to South Africa during the first half of 2004 and it is expected that it will bring significant benefits to both countries. About 400 new jobs will be created in South Africa during the three-year construction period and maximum use will be made of local suppliers,” petrochemical giant Sasol said in a statement.
The project consists of a major gas field development in Mozambique, a pipeline of some 865km to Secunda in Mpumalanga, the conversion of Sasol’s current gas pipeline network and the supply of natural gas to industries in South Africa, including Sasol’s own factories.
The pipeline will be owned by a joint venture company formed between Sasol and the governments of South Africa and Mozambique.
Sasol executive director Patrick Davies said capital expenditure on the project would amount to R10-billion.
”About R4-billion will be invested in the construction of the pipeline from the gas fields of Temane and Pande in the Inhambane Province of Mozambique, to Secunda.
”The rest of the capital will be spent on the development of the gas fields and a gas processing facility, about R4,5-billion, and the preparation of the necessary infrastructure at Sasol’s plants in Secunda and Sasolburg as well as the conversion of Sasol’s existing pipeline gas markets — about R1,5-billion.”
Sasol would also convert its existing pipeline-gas market to natural gas, switch its Sasolburg plants from coal to gas as well as taking gas into Secunda to supplement coal-based growth there, Davies added. – Sapa