Transnet Pipelines (TPL) has called for expressions of interest (EOI) for a strategic project to repurpose the Lilly Gas Pipeline from transporting Methane Rich Gas (MRG) to regasified Liquefied Natural Gas (LNG).
TPL said in a statement on Tuesday that the project was in line with its commitment to bolster South Africa's energy infrastructure and develop the LNG value chain to support the growing demand for natural gas.
“This initiative positions Transnet's natural gas network’s business as a vital contributor to the country's long-term economic growth and transformation,” the pipeline operator said.
The Lilly Pipeline currently transports approximately 500 million cubic metres of MRG annually from Secunda via Empangeni to Durban, with key offtake points along the route.
The new project entails constructing an intake station near Empangeni to connect with the new Zululand Energy Terminal (ZET) as the source point for the Port of Richards Bay and splitting the flow at Empangeni to allow bi-directional flow towards Durban and Secunda. It also includes the debottlenecking and modelling of the pipeline to ensure maximum future capacity to meet market demand and secure commercial agreements.
As part of the plan to meet demand for gas, in January Transnet National Ports Authority appointed the Transnet Pipelines and Vopak Terminals Durban consortium to develop and operate the ZET. The terminal will be a crucial hub for importing LNG that will be integrated into the Lilly Pipeline network.
TPL has invited interested parties to submit EOIs to secure pipeline capacity on the repurposed Lilly Pipeline.
“The EOI process will help TPL assess market interest and demand, which will inform the pre-feasibility study and future request for proposal processes. This EOI is non-binding and aims to gather preliminary market interest,” the pipeline operator said.
Interested parties must submit their responses by 17h00 on 30 August 2024 (SAST).
The EOI document can be downloaded directly from National Treasury’s e-Tender Publication Portal here or via the Transnet Portal here.
For more information on the EOI submission process and project details, contact Transnet Pipelines, Head: Business Development, Kresen Naicker on +27 83 361 2300,: +27 83 278 6360 or via e-mail: Kresen.Naicker@transnet.net
