* Multi-product pipeline will carry petrol, diesel, jet fuel
* Total project cost at 23.4 bln rand
HEIDELBERG, South Africa Jan 11 (Reuters) – South
African logistics group Transnet started operating a
new multi-product fuel pipeline on Wednesday, the company’s
single biggest capital project to date, although it will take
until 2013 to reach intended capacity.
The 24-inch pipeline running over 550 km replaces an old
12-inch multi-product line from Durban to Johannesburg, built in
1965, which is nearing the end of its life.
The line will help supply fuel to South Africa’s Gauteng
province, the country’s economic hub.
“(The new pipeline) is the greenest, safest and most
cost-effective method of fuel delivery,” Chief Executive Brian
Molefe said at the launch.
“It will ensure that the inland market demand is met …
(and) ease road congestion by reducing the number of tankers on
our roads.”
The entire project includes the pipeline, a network of
smaller inland pipelines, pump stations and associated terminals
at a total cost of around 23.4 billion rand ($2.9 billion), more
than double an initial forecast of 11.1 billion rand.
Until all terminals are completed, Transnet will only be
able to use the new pipeline at half capacity and send only
diesel, while the old line will be used to send other products.
Continued…
