Tapping into southern Africa's natural gas
Johan van Tonder
What do you do when a country sits on top of vast reserves of natural gas but
has no market for it, and a neighbouring country has a market for about 120
million gigajoules per year but has no access to natural gas? It's simple:
transport the gas across countries in 865km of pipeline.
 A number of historic agreements between Sasol, the governments of Mozambique
and of South Africa in 2002 brought a new dimension in Southern Africa's energy
history. An 865km pipeline to bring natural gas from Mozambique to South Africa
is now nearing completion. The Sasol natural gas project does not just bring
green energy, it supports NEPAD, employment and empowerment in both countries.
Going green
Natural Gas is an environment-friendly energy carrier and has become the fuel
of choice in many countries around the world. At a time when the environment is
increasingly featuring more prominently on the global agenda, the benefits of
gas in terms of reduced emissions, convenience and safety are becoming ever more
apparent. In South Africa, Sasol converts coal into value-added synthetic fuels
and chemicals through unique Fischer-Tropsch technologies. From the middle of
2004 Sasol will replace about 5-million tons of coal per year at its Sasolburg
plant with the natural gas piped from Mozambique.
A comprehensive, world-class environmental impact assessment was done for the
pipeline construction phase of the natural gas project. The Mpumalanga province
which will carry the pipeline for part of the way in South Africa is generally
sensitive to ecological disturbance. By burying the pipeline one metre below the
surface, Sasol will be able to rehabilitate affected land areas so that there
will be few visible surface signs that the soil was disturbed.
Where the pipeline has needed to cross private land, affected landowners have
been compensated. But in planning the path of the pipeline, sometimes unexpected
surprises have altered its course. While clearing the right of way in the area
of Nelshoogte, the contractor came across a stone cairn of undoubted
archaeological value, in the middle of the intended pipeline route. In order to
avoid destroying such an artefact, the pipeline route was redirected. Areas that
have been earmarked as potential World Heritage sites have also been avoided.
Sasol has also developed unique technology for the conversion of natural gas
to environment-friendly liquid fuel. Two pioneering projects are already in the
construction phase, at Qatar in United Arabic Emirates and at Escravos in
Nigeria. Both plants will be brought into operation by 2005.
Employment and empowerment
It is expected that the natural gas project will bring significant benefits
to both Mozambique and South Africa. The pipeline will be owned by a joint
venture company formed between Sasol and the governments of South Africa and
Mozambique with provision made for the future inclusion of black economic
empowerment (BEE) shareholders as well as privatization initiatives.
 The project has a value of US$1,2-billion. About $0,4-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 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.
The selling of natural gas to South African markets will grow the economy of
Mozambique by US$2-billion during the coming 25 years, through gas royalties,
taxes and dividends.
During the construction of the gas pipeline and the developing of the gas
fields of Temane and Pande, about 1 500 employment opportunities will be
created. Every attempt is made to make use of local suppliers in Mozambique, to
grow micro, small, medium and large businesses.
As part of its growing gas business, Sasol has already signed two memoranda
of understanding with empowerment groups in Mpumalanga and KwaZulu-Natal for the
establishment of local gas distribution companies. This project could serve as a
model for other Public Private Partnership (PPP) ventures that are so necessary
for the South African economy.
Sasol has also provided up to US$5million to be spent during the construction
phase on communities in the Temane and Pande gas fields and along the pipeline
route. Part of this is to be utilised for the drilling of boreholes for fresh
drinking water, upgrading of the drinking water supply system at Ressano Garcia,
agricultural projects for commercial farmers, cashew nut tree spraying
programmes and flood disaster relief.
Supporting initiative for NEPAD
The Mozambican natural gas project, officially launched in May 2002 by the
President of the Republic of Mozambique, Mr Joaquim Chissano and the President
of the Republic of South Africa, Mr Thabo Mbeki, at a ceremony held in the
Temane gas field in the Inhambane Province of Mozambique, also supports NEPAD.
Pieter Cox, chief executive of Sasol Limited, said at the launch: "The
cross-border agreements between Sasol and the governments of Mozambique and
South Africa have an important significance, because it represents a substantial
step towards achieving the vision of President Mbeki of a New Partnership for
Africa's Development (Nepad).
Interesting statistics about the gas pipeline
· The total length of the pipeline is 865 km.
· The length of the pipeline on the South African side of the border is 340 km.
· Hall Longmore is manufacturing 205 km pipe in South Africa.
· 660 km of pipe will be imported from Japan and Europe, in nine shipments.
· The pipeline will comprise 48 056 sections of pipe, each 18 meters in length
and
weighing approximately 3,1 tonnes depending on the wall thickness.
· The diameter of the pipe is 660 mm.
· The wall thickness of the pipe varies between 10,8 and 17,3 mm, depending on
the pipeline route and the material grade.
· About 5 500 heavy vehicle trips are expected during the period that the pipe
will
be laid, of which more than 2 000 trips will take place in South Africa.
The pipeline will supply energy equivalent to 6,5-million tonnes of coal per
year.
More information:
Article by J van Tonder and edited by J Limson.
Contact J van Tonder at Johan.VanTonder@sasol.com
Contact Sasol: www.sasol.com
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