Alf Moselakgomo

A multibillion-rand liquid petroleum pipeline to be built between Mozambique and Mpumalanga has been given the green light.

The licence for Petroline, a South African-Mozambican company, to build the R4billion pipeline was granted by the National Energy Regulator of South Africa on Monday.

Pinky Moabi, of Woman in Oil and Energy South Africa (Woesa), said the pipeline would transport 3,5billion litres of fuel a year, 1,5billion of which would be offloaded in Nelspruit and the remainder in Kendal, near Witbank. Woesa is a shareholder in Petroline.

Moabi said: "The pipeline will run from Matola Harbour in Mozambique to Nelspruit where a storage depot will be built, complete with railway and road facilities for offloading."

Brenda Horne, chief executive of the Maputo Corridor Logistics Initiative, said the move was good news for the province.

"The positive effect on the economy for the region will be substantial," Horne said.