10 February 2025 |
Transnet National Ports Authority (TNPA) has officially entered into a significant 25-year terminal operator agreement with Zululand Energy Terminals (ZET) for the development of South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay. This milestone agreement follows ZET’s selection in 2024 as the preferred bidder to design, construct, and operate the terminal. ZET is a joint venture between Vopak Terminal Durban and Transnet Pipelines.
The LNG terminal, which will be located in the South Dunes precinct of the Port of Richards Bay, is expected to have an initial throughput capacity of at least two million tons per year. However, with future expansions, the terminal’s annual capacity could rise to more than five million tons over the course of the concession. The first phase of the development will feature a floating storage unit and an regasification system, with commercial operations slated to begin in 2028.
Acting CEO of TNPA, Phyllis Difeto, emphasized that this LNG terminal will attract an estimated investment of R7 billion to the Port of Richards Bay, reinforcing the port’s position as a prime gateway for LNG imports. She also highlighted TNPA’s ambitions to develop additional LNG terminals at the Ports of Saldanha (Western Cape) and Ngqura (Eastern Cape), contributing to South Africa’s energy security.
The development of this LNG terminal aligns with South Africa’s broader energy goals, including the introduction of at least 6,000 MW of gas-to-power projects in KwaZulu-Natal by Eskom and independent power producers.
In addition, TNPA has signed a R123-million agreement for the construction and operation of a new liquid bulk terminal at Richards Bay, to be managed by FFS Tank Terminals. This development is expected to enhance the port’s capacity to handle liquid bulk cargo, particularly bunker fuels, which are crucial for maritime logistics. The liquid bulk terminal is slated for commercial operation in February 2025 and will provide modernized bunkering services to a range of vessels, including bulk carriers, container ships, and tankers.
Both the LNG and liquid bulk terminals are expected to be key drivers of job creation in the region. The LNG terminal alone is projected to generate over 1,000 job opportunities during construction and operations, as well as create downstream business opportunities for the surrounding uMhlathuze region. The liquid bulk terminal will generate around 50 direct and indirect jobs throughout its development.
KwaZulu-Natal Premier Thami Ntuli has praised both projects, viewing them as significant milestones in unlocking economic opportunities for the province. “This signing confirms that KwaZulu-Natal will become the leading ecosystem hub, attracting much-needed investment and creating job opportunities for our people,” Ntuli said.
“The introduction of this groundbreaking LNG import facility by Zululand Energy Terminal is a critical response to our nation’s energy challenges. Equally important, is the redevelopment of the bunkering services facility to be operated by our partner, FFS Tank Terminals. 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,” Dr Andile Sangqu, Transnet Board Chairperson.
These developments are poised to be game changers for the economic landscape of the region, further cementing Richards Bay’s position as a critical hub for energy and maritime logistics in South Africa.
Source: Transnet National Ports Authority