Demand for liquid fuels in Gauteng Province has increased rapidly and the existing pipeline network between Durban and Johannesburg is near the limits of its capacity. To accommodate future growth, Transnet has allocated R11,2 billion for the construction of a new multi-product fuel pipeline from Durban to Johannesburg to replace and enlarge existing pipeline capacity.
The New Multi-Product Pipeline (NMPP) will transport petrol, diesel and jet fuel from the third quarter of 2010. Murray & Roberts subsidiary, Hall Longmore, has been awarded an order to manufacture and supply the specialist pipe at a value of about R2 billion. The order consists of approximately 500 kilometres of Ø610 mm line from Durban harbour to Nigel, and approximately 200 kilometres of Ø406 mm line from Nigel to Langlaagte, and from Watloo in Tshwane to the terminus near Kendal Power Station.
Hall Longmore’s involvement with the NMPP began in May 2006 with the provision of capability and feasibility information. Significant technical involvement with the NMPP Alliance Joint Venture culminated in the award of an order for the three layer coated pipe contract to Hall Longmore as part of the Impumelelo Pipeline Joint Venture.
In preparation for the NMPP project the Group approved a significant capacity expansion at Hall Longmore, including a major upgrade of the ERW plant and a new coating facility to a capacity of 250 000 tons per annum. There have been commissioning challenges in the coating plant which have impacted the company’s production program.
The first-part order of the Transnet pipeline is near completion and delivery of the large bore Ø610 mm pipeline has commenced. The upgraded plant increases the company’s capability to manufacture pipe by the more efficient ERW high frequency induction welding method. The upgrade to Ø610 mm and downstream improvements will enhance the company’s capacity to take on further projects of this nature.
Hall Longmore is a world class pipe manufacturing facility able to meet the internationally accepted American Petroleum Institute quality standard and compete with other world class pipe manufacturers in the international market.
