South Africa’s Transnet National Ports Authority (TNPA) has signed a 25-year terminal operator agreement with Zululand Energy Terminals (ZET) for the development of a new LNG terminal at the deepwater KwaZulu-Natal port, in Richards Bay. The LNG import terminal is expected to have an initial yearly throughput of at least 2 Mt/year, with the potential to raise the volume to above 5 Mt/year over the 25-year concession period. The KwaZulu-Natal port will be the country's first LNG import terminal. The first phase of the project includes a floating storage unit and an onshore regasification system and is expected to start commercial operations by 2028. TNPA aims to attract ZAR7bn (US$380m) in investment to the Port of Richards Bay and aspires to eventually develop LNG terminals in the ports of Saldanha (Western Cape) and Ngqura (Eastern Cape).
ZET, a JV between Vopak Terminal Durban and Transnet Pipelines, was selected in 2024 as the preferred bidder to develop, construct and operate the deepwater KwaZulu-Natal port. The development was in line with South Africa’s plan to introduce at least 6 GW of gas-to-power projects by both Eskom and independent power producers in KwaZulu-Natal. TNPA also signed a ZAR123m (US$7m) terminal operator agreement with FFS Tank Terminals for a liquid bulk terminal to be built and operated also at the Port of Richards Bay to enhance the port’s capability to handle liquid bulk cargo, particularly bunker fuels essential for maritime logistics.
As of end-2024, South Africa did not yet possess any LNG regasification capacity.
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