update on progress nmpp infrastructure investment

UPDATE ON PROGRESS
NMPP INFRASTRUCTURE INVESTMENT
Mr Chris Wells
Acting Group Chief Executive
07 October 2010
OBJECTIVE OF THE PRESENTATION
As indicated in past, Transnet will update all roleplayers including the media when appropriate. Communication to the
stakeholders is being made on a regular basis (Transnet Board; DoE/DPE; Regulator/NERSA; Media)
Objective of this session
Progress in rolling out the project
To share challenges and impact on
timelines and projected future cost
INDEX
Transnet Strategy and Investment plans
Mr. C Wells
Project Progress
Mr. N Eve
Security of supply: Bridging Plan
Mr. C Möller
Conclusion and Way forward
Mr. C Wells
1
TRANSNET’S STRATEGIC PRIORITIES
Regulatory
environment
Increase
productivity and
efficiency
Volume growth
Improving
customer
services
SHEQ
Financial
sustainability
Human
resources
Create capacity
Strategy
enablers
The NMPP is important and
significant in Transnet’s
capital investment programme
2
TRANSNET’S INFRASTRUCTURE INVESTMENT PROGRAMME
To enable and support economic growth, Transnet continues with its major capital investment programme
Transnet’s Capital Investment Plan
22.8
21.9
R billion
17.1
10/11
11/12
Five Year
Plan
(Rbn)
Total 5year plan:
R93.4bn
12/13
16.2
13/14
15.3
Rail
54.6
Ports
24.7
Pipeline & Other
14.1
14/15
 Investment Plans are reviewed annually to ensure alignment with market conditions and operational
requirements and approved through governance structures
 NMPP investment cost included in the approved 5-year plan
Transnet is committed to the roll-out of its capital investment plans
3
NMPP: MAJOR STRATEGIC PROJECT IN TRANSNET INVESTMENT
PORTFOLIO
• To replace the existing 45-year old Durban-Johannesburg Pipeline (DJP - 12 inch) urgently as it
is running at full capacity and nearing the end of its design life
NMPP
Investment:
Strategic Intent
• To increase the capacity on this critical route (Durban-Gauteng) to meet projected demand (16
inch required) from a business case perspective
• Include additional capacity to ensure security of supply for the long term as required by the
Department of Energy (mainline increased from 16 inch to 24 inch)
Investment
Overview
• 555km of 24 inch pipeline (mainline) and 160km of 16 inch pipelines
• NMPP, as both a Greenfields and Brownfields project, executed over long distances with difficult
terrain would have significant issues in respect of cost and time delivery
Rolling out with a sense of urgency
• The Department of Energy in 2006 required the size of the new pipeline to be increased to address
projected potential security of fuel supply shortages in 2010/11.
• The Transnet Board in 2008 took the decision to proceed with the NMPP project despite certain
unresolved risks to ensure that South Africa (specifically Gauteng) did not face fuel shortage.
Strategic and important world-class asset for South Africa over the long term
4
NMPP INVESTMENT COST
Forecasted investment cost shared with stakeholders
March 2010 = R15.5bn (baseline)
Expert multi-disciplinary team currently finalising cost and commissioning dates given the now
generally advanced state of engineering and design
Updated costs and deliverable dates will be communicated in Nov/Dec 2010
 This will be shared with all governance bodies and roleplayers
Increase of R1bn in the NMPP project cost impacts
the fuel price by a relatively small amount
(estimated currently at less than 1 cent/litre)
5
FUNDING PLANS
 Transnet does not receive any subsidies or loans from the Government (Shareholder)
Funding
Strategy
 Transnet funds its capital investment programme from:
• Cash flows from operations (tariffs)
• Funds raised in the debt capital markets based on Transnet’s strong balance sheet and
credit rating
 The 5 year funding plan includes funding from:
• Transnet Domestic and International Bonds (DMTN/GMTN)
Funding
Investment
• Commercial paper
• Development Finance Institutions
Funding requirements
2010/11 to 2014/15
Of R40bn
• Export Credit Agencies
 Fuel levy to Transnet for the next 3 years for funding of “Security of
Supply” portion of the NMPP project (24 inch mainline),
•
Transnet
Pipelines:
Security of
Supply
16”
Would have been received by way of tariffs in
subsequent years (now will be deducted from the asset base –
24”
no double counting)
•
As no returns are allowed by Regulator on Capital work
in progress
•
Received first levy payment during September 2010
6
UNCERTAINTY IN REGULATED TARIFFS
Increased investment risk to ensure appropriate return on investment
There remains significant economic regulatory risk as the determination of the required tariff by
NERSA is still an area of significant concern.
It is critical that tariffs granted give a fair return on invested capital.
Although uncertainty in funding model and rate of return
However Transnet is committed to engaging constructively with NERSA and DOE to
ensure that going forward the Regulatory process results in predictable and fair
tariffs (cash flow for Transnet)
7
NMPP PROJECT PROGRESS
Mr Neville Eve
07 October 2010
SCOPE OF THE NMPP
 160km of new 16 inch Pipelines including
connection to 3 existing depots and
the Jameson Park pump station
 2 New Terminals
a Greenfields site at Jameson Park and
a Brownfields site at Island View at the Port of Durban
 555km of new 24 inch Pipelines
Several major and minor river crossings
Half of the line in mountainous terrain
Wetlands
 Four Mainline Pump-stations in Phase 1, (Pump station 0 being at Terminal 1)
Pumping capacity to move product 1800 metres up the escarpment
Max pumping capacity after initial installation is ca. 1150m3/hr
9
PETROLEUM PIPELINE NETWORK AND THE ROUTE OF THE NMPP
GAUTENG
PRETORIA WEST
WALTLOO
GAUTENG
SECUNDA
RUSTENBURG
SOUTH AFRICA
MPUMALANGA
TARLTON
NORTH - WEST
WITBANK
KENDAL
AIRPORT
LESOTHO
ALRODE
JAMESON
PARK
RICHARDS
BAY
DURBAN
CAPE TOWN
SECUNDA
KLERKSDORP
SASOLBURG
COALBROOK
STANDERTON
AFRICA
VOLKSRUST
FREE
STATE
KROONSTAD
BETHLEHEM
VAN REENEN
VRYHEID
NEWCASTLE
KWAZULU /
NATAL
N
LADYSMITH
EMPANGENI
RICHARDS BAY
LESOTHO
INDIAN
OCEAN
REFINED PRODUCTS
CRUDE OIL
GAS
AVTUR
FUTURE NMPP PIPELINES
DURBAN
PPT-1741
NMPP TECHNOLOGY
11
NMPP STRATEGIC VALUE CHALLENGES

Safe, environmentally friendly and efficient system that will provide for security for supply for the
long term.

Significantly reduce the current road haulage of fuel from Durban to Gauteng.

Enhance supply integrity (low dependence on oil company feeder line run down scheduling)

A new liquid fuel transportation system to support strong economic growth for South Africa.

Product demand driving a schedule prioritised project which commenced on a fast track basis.

Engineering keeping pace with the delivery of the project.

The management of a complex physical and multi stakeholder delivery environment.
Transnet has met and will continue to meet these challenges.
12
Status of the Project
13
MAIN LINE PROGRESS
 Line Pipe Delivery Complete
 Welded 491.7 km (98.4%)
 Backfilled 364.1 km (76.8%)
 Re-instated 250.7 km (52.9 %)
14
MAIN LINE PROGRESS

Main River crossings complete (49)

Major Wetland crossings complete (481)
(95km)

First welding crew demobilized

Mainline sections on schedule

Hydro-testing began

Land Acquisitions complete (1148 properties)

All Environmental Approvals in place
15
DURBAN AREA PROGRESS
Durban area welded 71.1km (88.2%)
Durban area backfilled 35.8km (44.4%)
Durban are re-instated 11.5km (14.3 %)
16
PUMP STATION PROGRESS

Progress 32% (33%)
 Eskom Power supply progressing
 Earthworks and Civil works ahead of
schedule

Management of Risks
 Engineering & design
 Fast track construction
 Materials delivery
17
INLAND TERMINAL (Terminal 2) PROGRESS

Progress 27% (33%)
 Ahead of Schedule
 Satisfactory Safety and Environmental
performance
 Tank foundations

Management of Risks
 Engineering & design
 Material delivery
 Vendor data
18
Project Management
19
TRANSNET PROJECT LIFE-CYCLE PROCESS
20
NMPP CONSTRUCTION SCHEDULE AND LICENCE CONDITIONS

Transnet’s current revised forecast dates for each of these licence conditions are as follows:
NMPP Licence Conditions Schedule Requirements
LICENCE
CONDITION
ASSETS TO BE OPERATIONAL
DATE IN
LICENCE
CURRENT
FORECAST
1.3
KENDAL TO WALTLOO LINE
CONSTRUCTION COMPLETE
31 DEC 2009
31 DEC 2010
10.4
COMMENCE OPERATION OF 24” TRUNKLINE
31 MAR 2011
31 DEC 2011
1.2
CONSTRUCTION OF ALL ASSETS COVERED
BY THE LICENCE COMPLETE AND READY
FOR OPERATION
20 DEC 2011
31 DEC 2013
NOTE:
 The delay in the 24” Trunkline gives rise to the need for a Bridging Plan
 Stakeholders were advised Jan – March 2010 of the delayed final completion date
of Aug 2013. This remains the target completion date.
21
DELAY IN CONSTRUCTION SCHEDULE
22
PRIMARY SCHEDULE DELAY & COST DRIVERS
Abbreviated project life cycle process


Fast Track Engineering demand

Long lead procurement challenges

Contract strategy impact

Route and location option feasibility engineering
Physical environment


Adverse weather

Rock / Trenchless Crossings / HDD / Wetlands / Street Works / Security

Physical / logistical construction spread

Statutory approval process

Land acquisition

Underestimated wetland impact

Time related costs

Social interface challenges
23
DURBAN PORT & ISLAND VIEW PROPOSAL AS IN MARCH 2008
DURBAN HARBOUR
Existing Transnet pump station
Natcos Tank
Proposed Island View Terminal
Station
FYNNLAND
Pipeline routes not shown
24
DELIVERY ACHIEVEMENTS

The Mainline and Facilities Project is progressing well

Majority of major contracts have been awarded

Pipeline is fully manufactured and on site

Commissioning of inland systems underway

All regulatory approvals have now been obtained

World class technologies employed

Communities have benefitted from construction of the main line

Transnet has been a responsible corporate citizen in the delivery of this project, incl

2100 local people recruited, trained and employed over 9 magisterial districts

190 home owners participated in the NMPP Mini Quest Houses accommodation project

Specialised skills training eg. 40 Welders (25 % women and 20 advanced qualification)

World class standards of physical environment protection and re-instatement
25
SECURITY OF SUPPLY - BRIDGING PLAN
26
OVERVIEW OF TRANSNET PIPELINES (TPL)










•
•
•
•
Turnover of about R1,4 billion/annum.
560 Employees with Head Office in Durban.
We own, maintain and operate 3000 km of high pressure, underground steel pipes supplying energy (petroleum and
gas) to the economic heartland of our country. At any moment the SA Oil Industry has 300 million liters of fuel in our
system.
We transport energy in the form of a variety of petroleum products such as petrol, diesel, crude oil and jet fuel as well
as Gas through our pipelines and our clients are the Oil Companies of South Africa (SAPIA-members).
Our pipelines are like arteries supplying energy to the eastern parts of our country and are key elements to ensure an
appropriate supply of petroleum products to meet security of supply challenges.
Capacity constraints in our pipeline system could hamper economic growth in our country’s heartland. Present
petroleum pipeline between Durban and Gauteng is operating at maximum capacity which is insufficient to meet
demand.
Primary (“First Choice”) mode of transport of SA Oil Industry for Liquid Fuels being safe, bulk volume, low cost,
reliable, environmentally friendly carrier.
Our tariffs are used as benchmarks for pricing with regard to the transport element of the controlled price of fuel in
South Africa.
We are regulated by the National Energy Regulator of South Africa (NERSA) as far as both our petroleum as well as
gas activities are concerned.
We presently hold the following licences (with conditions) from NERSA:
Operations of the total petroleum pipeline system.
Operations of the Gas pipeline (Lilly-line)
Operations of the Tarlton storage facility.
(For all licenced operating activities, tariffs are set and/or approved by NERSA.)
Construction of the New Multi Products Pipeline (NMPP).
27
THE EXISTING NETWORK ALSO INDICATING THE ROUTE AND POSITION
OF THE NEW MULTI-PRODUCT PIPELINE (NMPP)
GAUTENG
PRETORIA WEST
WALTLOO
GAUTENG
SECUNDA
RUSTENBURG
SOUTH AFRICA
MPUMALANGA
TARLTON
NORTH - WEST
WITBANK
KENDAL
AIRPORT
LESOTHO
ALRODE
JAMESON
PARK
RICHARDS
BAY
DURBAN
CAPE TOWN
SECUNDA
KLERKSDORP
SASOLBURG
COALBROOK
STANDERTON
AFRICA
VOLKSRUST
FREE
STATE
KROONSTAD
BETHLEHEM
VAN REENEN
VRYHEID
NEWCASTLE
KWAZULU /
NATAL
N
LADYSMITH
EMPANGENI
RICHARDS BAY
LESOTHO
INDIAN
OCEAN
REFINED PRODUCTS
CRUDE OIL
GAS
AVTUR
FUTURE NMPP PIPELINES
DURBAN
PPT-1741
PERSPECTIVE ON PIPELINES TARIFFS : AS PERCENTAGE OF FINAL FUEL PRICE
Example: Petrol price: Gauteng October 2010 @ 796.00 c/l
Wholesale margin
50.868
Service cost recoveries
7%
10.800
1%
Basic fuel Price
390.782
49%
Dealers margin
81.200
10%
Zone
differential, 15.500, 2%
TPL tariffs: 11.6
Differential : 3.9
Fuel Levy
160.000
20%
Incremental Inland
Transport Recovery Levy
3.000
0%
Petroleum Products Levy
0.150
0%
NMPP Levy
7.500
1%
RAF levy
72.000
9%
Customs & exercise
4.000
1%
29
THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA
30
THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA
2
Increase pipeline capacity between Durban and Gauteng
Sequence of events leading from Pipeline Capacity Study (Plan) to NMPP Project









Plan initiated in 1996. More capacity needed in 2015 at time. Annually updated.
2002 update : Higher growth rates. Need shifted to 2010.
Start with planning for new pipeline. Address both issues of DJP replacement and additional capacity
(2003).
Transnet approval to build NMPP – January 2005.

16" pipe to be completed Q3 2010.

Project started (feasibility)
During 2006 : Shareholder debate and request to revisit project

20 year planning horizon

Annual GDP-growth of 6%

Major changes in South Africa Oil Industry

Termination of Sasol Supply agreement

Clean Fuel project

Increase in economic growth in country and therefore demand for fuels not seen before.
Consequence : Urgent 2006 update of plan.
Overall result : More pipeline capacity needed, earlier – need for Bridging Plan from 2006/2010
At the same time : 24" pipeline optimal solution for 20 year challenge – with ability to increase capacity on
a phased-in-as-required (modular) basis.
Operational philosophy and network configuration change dramatically – trunkline with terminals concept.
31
NMPP INITIAL INVESTMENT AND MODULAR EXPANSIONS TO MEET
DEMAND OF 4.2% Y-O-Y THEREAFTER
4 000
De
si
g
n
–
5%
NMPP
3 500
in
e
3 000
Tr
u
2 500
2 000
24” @ 2m/s
li
ci
a
F
s
tie
d
an
n
Fi
.M
el
d
o
.2
-4
R
BE
%
DESIGN GROWTH (PIPELINE)
.6%
3
–
PROBABLE GROWTH
LOW GROWTH
24" @ DIFFERENT FLOW-RATES
1 500
24” @ 1m/s
1 000
EXPANSION STEPS TO MEET
4,2% DEMAND
24” @ 0.5 m/s (calculated min)
500
12" - PRESENT
20
31
20
29
20
27
20
25
20
23
20
21
20
19
20
17
20
15
20
13
20
09
20
10
20
11
20
07
0
20
05
m³/h
Flowrate needed
nk
l
24” @ 3m/s (max)
YEAR
32
FIRST TPL BRIDGING PLAN BASED ON ORIGINAL CONCEPT OF “STAYING
ABOVE THE RED LINE” (2006-2010)
Capacity needed from coast
NMPP
Growth Line
(example 5%)
Rail
Contingency with MP
Model should NMPP run
late (almost 2 years)
DIC
DRA: Drag Reducing Agents
DIC: Diesel in Crude Pipeline
DRA's
Ops
Changes
Original Capacity Available
Pipe, Rail and Road
Planned NMPP
completion
PERMANENT RAIL AND ROAD
Time
2010
2015
33
THE BRIDGING PLAN (PHASE 1) : DETAIL
Operational Changes
DJP design capacity - 74 Ml/w
Operating capacity at 68 - 70Ml/w
Until the Bridging Plan intervention only 63Ml/w was possible because of inefficient industry
coordination, ordering, scheduling, injection and acceptance of product
Cooperation amongst all role-players to address inefficiencies and enhance utilisation of pipeline
network
DRAs
DRAs are long-chain hydrocarbon polymers
 Had to do extensive testing with SAPIA members in early 2007
 Was planned for April 2007, only achieved end November 2007
34
THE BRIDGING PLAN (PHASE 1) : DETAIL
DIC Initiative
COP not used at capacity since clean fuel project - end 2005
Opportunity to transport other petroleum products in the COP
Contamination of diesel & processing of crude-diesel intermixture is issue
DIC initiative developed in detail between Transnet Pipelines and the inland Natref refinery
With OPS, DRA and DIC initiatives of Bridging Plan TPL has been able to keep the Gauteng region
fully supplied. Last stock-outs in December 2005 (clean fuels). Economic downturn did have a
positive effect. More than 3,8 billion litres of fuel delivered additional over the period by TPL. Role
of road transport also important for successful supply.
Rail & Pipeline Cooperation (Durban-Gauteng Corridor)
Allocate more Rail Tank Cars (RTCs) to transport fuels from Durban
Challenge is not to invest in new RTCs but to improve use of present fleet by improving on the
turnaround time of the RTCs
Other initiatives like Jet-fuel to continue and be increased
35
WC2010 SUCCESS STORY
SUCCESSES OF COMBINED TRANSNET PIPELINES AND TRANSNET FREIGHT RAIL PLANS TO
SUPPLY OR TAMBO AIRPORT DURING FIFA WORLD CUP 2010

No stock-out occurred during period.

TFR delivered 16Ml/w ex Durban on continuous basis.

TPL delivered 24 Ml/w ex Natref as planned.

All refineries supplied as planned.

Role of co-ordinating meeting between all roleplayers, lead by Department of Energy (DOE),
paramount in success.

Competition Commission exemption was critical for success.

TPL Simulation model developed as part of process, key in daily monitoring and overall
success of managing the project.

Silent success story of Fifa WC2010.
36
NMPP LATEST DELAYS : DE-RATING OF THE DJP AND SECURITY OF SUPPLY
RISKS AND CHALLENGES

Latest delays on NMPP will require the DJP to continue running at full capacity for at least another 9 months
beyond 31 March 2011 to cope with security of supply challenges to Gauteng.

After this, DJP is de-rated and run in combination with the NMPP trunkline. (By-passing TM1 as originally
planned as part of By-pass project)

Intelligent pigging inspection of the DJP has just been completed. Final report not available as yet but the
interim results indicate that the line still needs to be de-rated by 1 April 2011.

A direct consequence of this is increased of risk of security of supply to the inland market. Alternative modes
of transport will be needed to cope with this requirement (road, rail or combination).

The current Bridging Plan must be enhanced to ensure security of supply.

Plans will be developed to address two distinct periods, namely,

o
April – December 2011 (only downrated DJP, no NMPP trunkline (Bridging Plan II)
o
Post December 2011 (downrated DJP plus partial NMPP trunkline: By-pass project)
For period April – December 2011 detail plans need to be developed between DOE, DPE, TPL, TFR and Oil
Industry to cope with the challenge of de-rating the DJP before the NMPP is available – Phase 2 of TPL’s
present Fuel Bridging Plan.
37
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
Detail of Action Plans required during 2012 and 2013 (from 1 January 2012) – By-pass project
1.
Key principle of actions based on concept of simultaneous use of present DJP (to a de-rated service-level) and the
NMPP whilst by-passing Terminal 1 (TM1) in Island View (Port of Durban).
2.
Use of present Transnet Pipelines (TPL) Durban depot in Island View on a tight-lining basis is key to concept.
• Present TPL feederlines to Durban depot will be used.
• Present meters and pumps with a modified manifold will be used to feed both the DJP and NMPP
simultaneously.
• On exit-side of present depot a link needs to be made to presently mothballed 18" pipeline of TPL
• This 18" line will then be connected to the new 24" NMPP trunkline at exit-side of TM1, now to be
commissioned later.
3.
Through present TPL Durban depot the NMPP will be able to run on diesel at a flowrate of 500m3/h.
4.
Flowrate (as a multi-products pipeline) of the DJP will be decreased from present 520m3/h with DRA’s to 400m3/h
still with DRAs in order to reduce operating pressures required for prescribed de-rated condition of pipeline for
continued use (initial expert requirement).
5.
Above will provide the ability to by-pass TM1 on a tight-lining basis and will be able to meet with projected demands
in 2012 and 2013.
6.
NMPP able to function as multi-products line @ 500m3/h (role of TM2) – further reduced risks on DJP.
38
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
39
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
DIAGRAMMATIC LAYOUT OF THE PROPOSED PUMPING PROCEDURE WHEN USING BOTH DJP AND NMPP
AND BY – PASSING TERMINAL1 (TM1) (PRINCIPLE OF TIGHT - LINING)
EXISTING DURBAN PUMP STATION
PUMPING
STATION
METERS
TRANSNET
PIPELINES
EXISTING
FEEDER LINES
LINK LINE
DURBAN MANIFOLD SPLIT TO
RUN BOTH DJP AND NMPP AT
THE SAME TIME
TIGHT-LINING: FEEDER LINES THROUGH METERS AND DIRECT TO PUMPING STATION
AND INTO PIPELINES
TM1 (TERMINAL 1)
PUMPING
STATION
TANKS
LINK LINE
METERS
NEW COMPANY
FEEDER LINES
INTO TM1
FUTURE NMPP: FEEDER LINES THROUGH METERS AND DIRECT TO ACCUMULATOR TANKS
FROM TANKS TO PUMPING STATION AND INTO PIPELINE
40
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
Initial Task Team similar to that for Fifa World Cup 2010 approval to implement Nov 2010
STEERING COMMITTEE
CEO Level
(TPL, TFR, Sapia, DoE, DoT, DPE)
TRANSNET
Responsible for Security of Supply
PROJECT MANAGER
OIL COMPANIES
TRANSNET
Pipelines (TPL)
Sapia
BP
Rail (TFR)
OTHERS
Dept Energy (DoE)
Dept Transp (DoT)
Chevron
Ports (NPA)
Engen
PetroSA
Sasol
Airports (ACSA)
Ortia (ORTAFS)
Road Haulers (RFA)
Shell
Total SA
Vuyo
TASK TEAM
Provincial DoT's
Other
Khulaco
Other
Sub Task Team 1
LPT
Sub Task Team 2
Sub Task Team ..
41
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
QUANTIFYING THE TASK
42
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
SOLUTIONS AND PRINCIPLES
Principles to apply in reaching a solution :
•
Focus on Transnet Freight Rail solutions before road solutions – first prize is to keep road at present
levels.
•
Focus on block trains as opposed to General Freight Business (GFB).
•
Focus on depot bridging volumes as opposed to direct to customer deliveries (smaller volumes).
•
Focus on shifting coastal and on rail volumes rather than current rail volumes ex inland refineries.
•
Avoid capital investment that cannot be used after the end of BPII.
•
Take into account the long term sustainability and growth prospects of both rail and pipe.
•
Utilise synergies between rail and pipe.
•
Apply lowest cost options first.
43
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
• Replace remaining pipeline deliveries to Ladysmith and
Bethlehem with rail ex Durban [Permanent Solution after
NMPP]
• All Jet Fuel from DBN to Ortia by rail, not pipe
[Permanent Solution after NMPP up to 16ml/wk]
• Shift on-railing volumes and capacity to rail ex coast.
[Temporary Solution : After BPII, capacity can be shifted
back to on-railing] :
– Bloemfontein / Kimberley ex PE/EL instead of
Kroonstad
– Mokopane ex DBN instead of ex Waltloo
– Botswana ex DBN instead of Tarlton
• Maximise current rail volumes on the Energy Express to
Nelspruit, Rocky Drift, Matsapha ex DBN [Permanent /
temporary solution]
• Rail from coast to inland pipeline terminals (increase rail
to Kroonstad, Waltloo, Langlaagte, Rustenburg, or new
rail to Alrode, Pretoria West, Klerksdorp, Witbank
[Temporary solution – volumes should return to NMPP
after BPII]
• Replace Overland Exports to Zim/Zam/DRC ex SBG/SEC
with deliveries ex DBN, Maputo or Beira. [Temporary
solution, should be reversed after BPII]
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CONCLUSION
The NMPP is a strategic legacy investment which will give South Africa security of fuel supply for the
inland market for the long term.
It will be an asset to be proud of - environmentally friendly, safe, enabling economic growth and
providing cost efficient fuel supply.
The NMPP will be delivered successfully within the revised cost and timelines
There are good project controls and cost reviews in place and the NMPP will be benchmarked against
other international pipeline investments
World class multi-product pipeline that will secure the supply of petroleum products for the
long term
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