South Africa’s state-owned Transnet National Ports Authority (TNPA) has signed two agreements for the development of the country’s first LNG import terminal and the construction of a liquid bulk terminal at the Port of Richards Bay.
The first agreement – signed with Zululand Energy Imports – will see the development of an import terminal with an initial annual throughput of two million tons. Over a 25-year concession period, the terminal will have the potential to increase yearly volumes to over 5 million tons.
“By enabling the importation of liquefied natural gas, we are promoting the development of sustainable source of energy to meet limited and depleting gas supplies,” stated TNPA Board Chairperson Andile Sangqu.
Commercial operations for the LNG terminal are slated to begin in 2028. The first phase of the project will include development of a floating storage unit and onshore regasification system. TNPA expected the LNG terminal to generate approximately 1,000 jobs for the country.
According to TNPA Acting CEO Phyllis Difeto, the terminal is expected to attract approximately R7 billion ($380 million) in investments to the Port of Richards Bay. In addition to Richards Bay, TNPA has also expressed interest in developing LNG terminal in the Port of Saldanha in the Western Cape and the Port of Mgqura in the Eastern Cape.
The LNG import terminal is aligned with South Africa’s Department of Mineral Resources and Energy’s plans to deliver 6,000 MW of gas-to-power in the country.
Meanwhile, TNPA has also awarded shipping service company FFS Tank Terminal a R123 million ($6.6 million) contract to construct and operate a liquid bulk terminal at the Port of Richards Bay.
“This development will further enhance the Port of Richards Bay’s liquid bulk handling capabilities, focusing on bunker fuel operations that are essential to maritime logistics, Sangqu concluded.
Slated for commercial operation in February 2025, the liquid bulk terminal will provide modernized bulking services to the port, enhancing its capacity to handle liquid bulk cargo. Expected to generate roughly 50 direct and indirect jobs throughout its development, the liquid bulk terminal is seen as a significant economic opportunity for the province of KwaZulu-Natal.
