Transnet Pipelines has been given the go-ahead to construct a petroleum pipeline from Durban to Gauteng, the National Energy Regulator of South Africa (Nersa) said on Thursday.
Expected to cost R11-billion to build, it will carry petrol and diesel and is expected to come into use in the third quarter of 2010, by which time the existing pipeline will be insufficient, said spokesperson Wanda Langenhoven.
This pipeline is expected to have sufficient capacity to last until 2030.
Nersa turned down private-sector consortium iPayipi’s application to build the pipeline. It will give reasons for its decision in due course.
Transnet group chief executive Maria Ramos Group welcomed Nersa’s decision.
”Our track record as an operator is clear evidence that we are a good option and we are heartened by the faith bestowed on us to deliver this vital economic infrastructure on time and within budget,” she said in a statement.
Nersa’s decision came after public hearings a month ago in which Transnet’s major customers gave support to the application for the construction licence. — Sapa