In 2007, Transnet (formerly Petronet) received a construction licence from the National Energy Regulator of South Africa (NERSA) to construct and operate the 544 km, 24 inch diameter Durban to Gauteng Pipeline and an associated 160 km, 16 inch diameter inland pipeline network.

The project involves the replacement and expansion of the Durban to Johannesburg Pipeline, which transports refined petroleum products from two refineries in Durban, as well as imported refined petroleum products from storage facilities located in the Port of Durban.

The new pipeline will include three pump stations and the construction of storage terminals in Durban and Johannesburg.

A joint venture between Arup and WorleyParsons was awarded the engineering, procurement and construction management contract for the project, and the coated line pipe has been supplied by South Africa’s Impumeleo Pipeline.

A joint venture between France’s Spiecapag and South Africa’s Group Five was awarded the construction contract in May 2008, with Spiecapag acting as operational leader for the project.

In January 2010, Transnet made an application to NERSA to amend the conditions of its licence to operate the petroleum pipeline system. If approved, the amendment would allow Transnet to operate portions of its new multi-product pipeline ahead of the initial target completion date of December 2011, outlined in the current licence.

Transnet has stated that although the entire pipeline will not be completed until December 2011, segments of the pipeline will be ready for operation at the end of June 2010.