The successful execution and implementation of energy projects in the Southern African Development Community (SADC) region, such as the Mozambique–South Africa gas pipeline project, depends on adequate collaboration between SADC member States and the owner-operators of the project, according to petrochemicals company Sasol group regulatory services VP Johan Thyse.

Speaking at the SADC Industrialisation Week in Johannesburg, Gauteng, on Tuesday, Thyse pointed out that the Mozambique and South African governments, together with Sasol, have, to date, invested R24-billion in the ongoing pipeline project, or Loop Line 2, which involves expanding the capacity of the existing 865 km gas pipeline from the central processing facility (CPF) at Temane, in Mozambique, to Secunda, in South Africa.

The project will comprise the installation of a pipeline – parallel to the existing pipeline – from scraper station 1 (STS1), which is about 128 km from the CPF, over 127 km, where it will reconnect to the main pipeline at scraper station 2.

The pipeline will initially transport gas to South Africa, but will also be able to serve additional markets in Mozambique and South Africa as gas becomes available.

Loop Line 2 will increase the pipeline’s available yearly gas transportation capacity from 169.4-billion standard cubic feet (bscf) to 191 bscf.

Loop Line 1, which runs from CPF to STS1, was commissioned in December 2014.

Thyse noted that, for similar projects to be successful within the region, it was salient to secure anchor customers to provide baseload capacity.

“There are sufficient gas resources in the region and it is important to focus on developing those resources through regional collaboration and interdependence,” he said.

He added that a gas ‘master plan’ was an important component for future gas development projects within the SADC region, and that the plan should include a regional energy charter to secure benefits for all participants.

It was also important to develop a clear roadmap of how the area could further develop regional gas infrastructure, he said, also highlighting the importance of developing and enabling a supportive regulatory and fiscal environment that was regionally focused.

Thyse stressed that policy had to be aligned, contextualised, clear, coherent and reasonable to create investment opportunities.

“Multilateral involvement and collaboration, underscored by partnerships across the industry and region must be considered. Partnerships in this industry are key,” he said.