Transnet pipelines' strategy is to do the following:
- Investment in additional capacity through the roll out and implementation of the NMPP which will ensure that pipelines employs the latest technologies and designs to execute its strategic role in the South Africa economy.
- Ensuring its role in the logistical fuel chain is fulfilled to ensure that the inland market (Gauteng) fuel requirements are met, especially during the NMPP construction phase. This will be done by the execution of Pipelines Bridging Plan which consists of four key initiatives:
- Operational improvements
- Use of drag reducing agents
- Transporting diesel or petrol in the crude pipeline and cooperation with Transnet Freight rail, especially with the transportation of jet fuel to O.R. Tambo International Airport (ORTIA).
- The revised implementation plan for the NMPP necessitates the use of both the NMPP and the Durban to Johannesburg Pipeline (DJP) for the 2012 and 2013 years to meet market demands.
- Staff up to 700 employees by 2013 to ensure that the transition into the new business environment with NMPP is successful.
- Continued interactions with regulatory Authorities in this dynamic environment to facilitate regulatory reform and to ensure alignment and cooperation amongst all stakeholders. It will be imperative to ensure that the tariff methodology is stabilized so that funding of strategic projects can continue with relative certainty and stability.
The infrastructure for the pipeline started in the a960's when it was determined that the railway lines from Durban and Mozambique were deemed inadequate to meet inland markets in Gauteng. From this beginning a 12 inch pipeline was commissioned from Durban to Gauteng (formerly Witwatersrand). The historic development is presented below:
- 1960 - Construction of a 12 inch pipeline for refined petroleum products
- 1969 - An 18-inch crude oil from Durban to inland refinery (NATREF) at Coalbrook in the Free State.
- 1973 - 2nd 16 inch pipeline for refined products. This was under-utilized due to the synthetic fuel line (coal to oil) construction in Secunda.
- 1995 - Petroleum line reconfigured to transport methane rich gas (Secunda to Durban via Empangeni).
The length of the network is as follows:
- Transnet Pipelines is responsible for 3,300km
- 590km is owned by Caltex (moving crude oil to their refinery at Calref).
- Out of the 21 plus billion liters conveyed annually, Pipelines moves 16-17 billion while Caltex moves ~ 5 billion liters.
The infrastructural profile of the pipeline and respective design capacity is presented below. These are categorized by "key commodities" handled; namely, crude oil, refined fuels, aviation turbine fuel line and methane-rich gas.
Crude Oil Line: 580 km
- Design cap = 6.8 bnl/a
- Current cap = 5.2 bnl/a
Refined Fuels Line: 725 km plus +/- 1,000 km network
- Design cap = 3.5 bnl/a
- Current cap = 4.3 bnl.a
Aviation Turbine Fuel Line:94 km
- Design cap = 1.2 bnl/a
- Current cap = 1.1 bnl/a
Methane-Rich Gas Line:+/- 570 km
- Design cap = 23 m GJ/pa
- Current cap = 17 m GJ/pa
Diagram: Pipeline Line Network - 2010
The pipeline network "traverses the following provinces: KwaZulu natal, Free State, Gauteng, North West and Mpumalanga.". Intake stations are located in Durban (at the refineries) with the crude at Coalbrook (NATREF- Natal Refinery); and the Sasol 2 and 3 synfuel plants located at Secunda.
The network also comprises of a tank farm at Tarlton with capacity of 30 million liters. This facility is used for storage and distribution of liquid fuels into Botswana. The gas pipeline originates from Secunda to Durban via Empangeni with take-off points at Newcastle and Richards Bay and all along the route.
Commodities Handled and Demand Forecast (2009-2030)
Primary commodities and associated volumes handled are as follows:
- Refined and synthetics conveyed by a 440 m3 hour/12" pipeline
- Commodities: petrol, diesel and aviation turbine fuel
- Crude Oil conveyed by pipelines with varying diameters such as
- Durban (Fynnland) - Ingogo: 16"
- Ingogo - Sasolburg (Coalbrook): 18"
- Vrede - secunda: 18"
- Secunda - Kendal: 20"
- Avtur conveyed from a 6" aviation pipeline from NATREF Coalbrook via meyerton to OR Tambo.
- Gas conveyed via plant at secunda to Durban via Standerton, Volksrust, Ingogo, Scheepersnek, Mahlabathini and Empangeni
Demand Forecast -Inland vs Coast Refineries and Imports
Primary Commodity Volumes (Actual vs Target) 2009-2011
- Refined and synthetics increased by 6.6% compared to previous year.
- Crude oils decreased by 1.2% due compared to previous year due to NATREF "Production problems."
- Avtur decreased by 8.9% due to Bridging plan which will transfer coastal Avtur volumes to Transnet Freight rail.
- Gas was definitely lower attributed to sluggish economy.
Demand Forecast for key commodities (2008-2022)
Plan: Future Pipeline Network - NMMP and Bridging Plan
The plan consists of:
- Phase 1 NMMP commission
- De-commissioning of a section of refined product line (Durban-Fynnland and Kroonstad).
Other prospective Pipelines besides the NMMP:
- Mozambique - Gauteng Pipeline (Petroline planned to construct and operate has a license from NERSA)
- Waterberg Synthetic Fuels Pipeline - this is linked to results by Sasol on investigations of coal reserves in Waterberg region.
Long-term Pipeline Network
The longer-term view consists of the following
- A direct link between the proposed PetroSA refinery in the Coega Industrial Development Zone and Sasolburg.
- A new refined products pipeline from the port of Maputo to Kendal (Gauteng) and the inland network
Plan: Long-term Pipeline Network