Integrated oil and gas company Sasol, iGas and Compania Mozambicana de Gasoduto, as joint partners in the Republic of Mozambique Pipeline Investment Company, announced the construction of a R1.1-billion gas compression station.
The station would facilitate a 20 percent expansion of natural gas delivery from Mozambique to South Africa by the end of 2009, Sasol said in a statement.
"The gas compression station will be based at Komatipoort in South Africa and will increase gas delivery capacity from a current 120-million gigajoules a year to about 147-million gigajoules a year," Sasol said.
Two gas-turbine driven compressor units and ancillary equipment would be used at Komatipoort to increase gas flow rates in Rompco's 865km long transborder pipeline.
The pipeline transports natural gas from the Pande and Temane gasfield in Mozambique to Sasol's operations at Secunda and Sasolburg in South Africa.
The engineering, procurement and construction management contract has been awarded to Foster Wheeler South Africa (Pty) Ltd. Sasol said the pipeline formed part of the $1.2-billion Natural Gas venture, inaugurated by former Mozambican President Joachim Chissano and President Thabo Mbeki on June 1, 2004. It was designed to have a capacity to transport 240-million gigajoules of gas a year.
The ROMPCO shareholding partners are the South African government through iGas (with 25 percent shares); CMG (with 25 percent shares) and Sasol Gas (with 50 percent shares).
"The project will provide short-term employment for about 450 people of whom about 150 will be skilled artisans and 300 local workers," Sasol said adding that preference would be given to local and South African suppliers as far as equipment and material sourcing was concerned.
"The additional gas will be used as part of the first phase of a planned 20 percent expansion of Sasol Synfuel's capacity at Secunda over the next eight years."
Commissioning of both the pipeline compressor station as well as the gas turbines was expected by late 2009.