South Africa’s state -owned Transnet National Ports Authority (TNPA) has signed a 25-year terminal operator agreement with Zululand Energy Terminals (ZET) to develop the country's first LNG import terminal at Richards Bay's South Dunes precinct.
ZET is a joint venture between Vopak Terminal Durban and Transnet Pipelines, which last year was selected as the preferred bidder to develop, construct and operate a new LNG terminal at the deepwater KwaZulu-Natal port.
In a statement, TNPA said that the LNG terminal would have an initial yearly throughput of at least 2 mill tonnes, but that there was potential to raise the terminal’s annual volumes to above 5 mill tonnes over the concession period.
A commercial operation date of 2028 was indicated for the first phase, which will include an FSU and an onshore regasification system.
Acting TNPA CEO, Phyllis Difeto, said the terminal would attract R7 bill in investment to the Port of Richards Bay and position it as “a premier gateway for LNG imports”.
TNPA also has plans to attract LNG developers to Saldanha, in the Western Cape, and to Ngqura, in the Eastern Cape.
Difeto added that the development was in line with South Africa’s plan to introduce at least 6,000 MW of gas-to-power projects by both Eskom and independent power producers in KwaZulu-Natal.
