Transnet National Ports Authority (TNPA) has signed two major terminal operator agreements for South Africa’s first LNG import terminal, marking a significant step toward energy diversification. The terminal will be located at the Port of Richards Bay, north of Durban on the Indian Ocean coast.
Key Agreements
LNG Terminal Development
- TNPA has partnered with Zululand Energy Terminal to design, finance, build, and operate the terminal for 25 years.
- Phase 1: A floating storage unit (FSU) with a capacity of 135,000–174,000 m³.
- Phase 2: Replacement of the FSU with an onshore storage tank of up to 220,000 m³.
- Final investment decision (FID) expected in 2026, contingent on customer commitments.
Bunker Fuel Terminal
- TNPA has also signed a 25-year concession with FFS Tank Terminals for a liquid bulk terminal specializing in bunker fuels at Richards Bay.
Why It Matters
Energy Security: Addresses South Africa’s energy supply challenges and promotes sustainable energy sources.
Maritime Competitiveness: Enhances fuel services and supports global shipping operations.
Infrastructure Modernization: Aligns with South Africa’s push for modernized port infrastructure.
Executive Statements
Andile Sangqu, TNPA Chair:
“By enabling LNG imports, we are ensuring a sustainable energy source as local gas supplies decline.”
Tshokolo Nchocho, TNPA Board Member:
“This project will boost maritime fuel services and enhance South Africa’s global shipping competitiveness.”
The Richards Bay LNG terminal and bunker fuel terminal will play a key role in South Africa’s energy transition, ensuring long-term sustainability and port modernization.
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Source: Lloyd’s List
