Fueling the future of oil and gas infrastructure

Under construction and due to be commissioned in the first quarter of this year, MOGS Oil & Gas Services (MOGS) owns a 50 percent stake in Oiltanking MOGS Saldanha (OTMS) – a new large-scale crude oil storage and blending facility located in Saldanha Bay, Western Cape.

A joint venture between MOGS and tank storage logistics company, Oiltanking GmbH, OTMS reached final investment decision for its crude oil blending storage terminal in February 2017. MOGS provides quantity surveying support for the design and construction phases of the project, with additional design work by three consulting engineering service providers.

Located behind the existing Strategic Fuel Fund (SFF) storage tanks, the tanks will be connected to the existing SFF pipeline and oil jetty. In its final stage, the 13.2-million-barrel facility – which is not built to supply to the South African market – will comprise twelve in-ground concrete tanks that will be used for both storage and blending of different grades of crude oil.

MOGS is a pan-African operator, investor and developer of oil and gas midstream infrastructure across the African continent. Operating on an open-access basis, the company develops fuel import terminals, storage and blending facilities.

A subsidiary of African investment company Royal Bafokeng Holdings, MOGS is a majority partner in the South Africa-based energy infrastructure company, Sunrise Energy, which is responsible for Africa’s largest open-access Liquefied Petroleum Gas (LPG) import terminal, worth an estimated $76 million.

On the African continent, MOGS operates within the West, East and Southern African regions as a capital and technical partner to governments and the private sector. Its operations are based in Tema, Ghana; Maputo, Nacala and Beira, Mozambique; and Saldhana, South Africa.

Through its open-access terminals, MOGS owns, operates and maintains oil and gas infrastructure, although it does not own or trade in any of the commodities handled. The company handles fuel products on a tariff basis in line with the country’s regulator, aiming to facilitate upstream and downstream access to the market.

As global markets move towards increased competition in the energy sectors, the open access model is expected to drive down prices and boost access to LPG and other fuel sources where the price of these commodities is unregulated. In an unregulated market, increased open access capacity could potentially lower the point of entry. The model also promises to ensure continuous maintenance of infrastructure through companies such as MOGS.

The Sunrise Energy open-access LPG import and storage facility will be accessible to all third-party LPG importers, distributors and bulk consumers. Located in Saldanha Bay, it is expected to enable the import of LPG in large quantities, boosting regional energy security and increasing downstream competition.

In recent years, the Western Cape has been experiencing shortages amounting to half its monthly 11,000 metric ton peak demand for LPG. With a capacity of 200,000 metric tons of LPG per annum, the new terminal is anticipated to meet the shortfall.

As South Africa works towards establishing a stable and sustainable energy mix – and developing a globally competitive energy sector – the projects at Saldanha Bay will serve to change the perception of South African design and technology.

With a long-term vision to invest in midstream infrastructure to boost capacity, MOGS will develop operating capabilities in different countries in a range of fields, including storage, pipelines, natural gas and LPG. Having established itself in South Africa, MOGS hopes to create more opportunities to develop the sector and contribute to the governments’ ambition of implementing a more sustainable energy mix.