Petroleum Africa
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Sunday, October 30, 2016
South Africa’s energy regulator, Nersa, has reportedly not approved of the price Mozambique’s pipeline company, Rompco, has set for the gas tariff. Rompco set a $3.59/gigajoule tariff for gas that will be transported to South Africa during 2017 from Mozambique’s Temane field operated by Sasol.
The proposed rate would be used for the transportation of gas from the Temane field via a new 127 km pipeline, which is due to be commissioned prior to the end of the year.
Rompco transmits the piped gas sold by Sasol Gas to all piped gas users in South Africa, except those in KwaZulu-Natal. Therefore, this tariff would impact the total maximum gas price upon which prices paid by all piped gas users in South Africa is based, according to a report from Money Web.
This is the first time Nersa has been asked to approve a tariff for the gas infrastructure that is wholly located in Mozambique. The tariff for the existing cross-border gas pipeline (Mozambique-Secunda Pipeline / MSP) was agreed upon at an intergovernmental level through a prescribed formula. The new Loop-line 2 is connected and tied into this existing gas pipeline, increasing the capacity of the MSP.
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