Transnet revises pipeline plans

Transnet yesterday announced that it had completed an extensive review of the New Multi-Product Pipeline (NMPP) which consists of three inland 16-inch pipelines, a 24-inch NMPP trunk line from Island view in the Port of Durban to Jameson Park in Gauteng and accumulation facilities in Durban and Gauteng. It is licensed by the National Energy Regulator of South Africa (Nersa) in terms of the Petroleum Pipelines Act. The trunk line will be completed during the third quarter of 2011 and will be operational by the last quarter of the same year, the company said. The 16-inch pipelines are complete and scheduled to be in operation by January 2011. The full system is scheduled to be completed and ready for operation by the end of 2013. The three 16-inch pipelines run from Kendall to Watloo, Alrode to Langlaagte and Alrode to Jameson Park. “This is a complex project extending over long distances, going through different terrains and subject to a number of legislative and regulatory requirements. These have had a significant impact on our schedule and delivery,” said Wells. There are several reasons for the change in schedule, he said, among them: • Substantial delays in the acquisition of land and in obtaining the required statutory approvals such as environmental impact assessments. • Change of location for the coastal terminal and pump stations due to conditions imposed by Environmental Authorisations. • Complex and protracted coastal terminal land lease negotiations. • National Key Points Act and security of supply requirements In addition to the schedule changes, Transnet has revised the cost estimates for the NMPP to R23.4 billion. Transnet, through its pipelines and rail freight divisions, is at an advanced stage of developing a bridging plan which will enable it to move up to 10 million litres of fuel per week between Durban and Johannesburg. This gives the company a further opportunity to move more volumes from road, said Wells.