LNG

Royal Vopak, the Dutch operator of global energy storage assets, reported a strong first quarter and an increase in net profits as it broadened its activities around the world and planned an LNG import terminal in South Africa.

South Africa’s state-owned Central Energy Fund has issued a request for information to assess the potential for establishing the country’s first LNG import and distribution terminal at the Ngqura deepwater port in the Eastern Cape.

The CEF, which is overseen by the Department of Mineral Resources and Energy (DMRE) is mandated to contribute to the security of the energy supply of South Africa.

The closing date for companies to respond to the request has been set at December 3, 2021.

The port of Ngqura, located 20 kilometres northeast of Port Elizabeth, will be the initial import hub for an LNG import programme.

The documents say that a floating storage and regasification unit (FSRU) is the preferred terminal configuration for the facility.

The FSRU’s proposed preliminary functional requirements include 170,000 cubic metres capacity of LNG storage and more than 4 million tonnes per annum of regasification capacity.

The preferred FSRU ownership model is to lease or charter a vessel for a 20-year period, along with an operator.

Possible EPC

Responses to the South African request could also lead to the possible appointment of an engineering, procurement and construction (EPC) contractor to develop the natural gas infrastructure.

The DMRE also plans to issue a request-for-proposal towards the end of February 2022 for independent power producers (IPPs) to contribute 3 gigawatts of gas-generated electricity.

The CEF is partnered by state-owned logistics company Transnet and the Coega Development Corp. (CDC).

State-owned Transnet, operates gas pipelines, railway lines and ports in South Africa.

Transnet has also been examining possible other projects over the past two years, including at the Port of Richards Bay in KwaZulu-Natal, about 160km north of Durban.

Transnet has said that the Richards Bay Natural Gas Network project could complement the delivery of LNG to new markets in the Eastern Cape and Western Cape provinces through the ports of Ngqura and Saldanha Bay respectively and would support the government’s future gas-to-power projects.

Qatar said it was working towards expanding energy cooperation with South Africa including the possible supply of LNG volumes in the future and help with natural gas infrastructure development.

South Africa plans to launch a tender in 2020 for its first LNG import terminal north of Durban at Richards Bay in a project partly-funded by a unit of the World Bank that usually helps under-developed nations lIke Bangladesh rather than commodities-rich countries.