A R22 billion onshore liquefied natural gas (LNG) regasification facility will be developed at the Port of Ngqura in the Eastern Cape following the signing of a terminal operator agreement between Transnet National Ports Authority (TNPA) and Ukwanda LNG.
The project includes establishment of a temporary floating unit.
The 25-year concession with Ukwanda LNG is a joint venture between Tamasa Energy Group and the Strategic Fuel Fund.
“The development is a direct response to South Africa’s Just Energy Transition programme, which is set to unlock a planned 6 000 MW Gas-to-Power pipeline,” TNPA said.
The facility is intended to supply gas for a 3 000 MW gas-to-power allocation, creating LNG import, storage and regasification capacity at Ngqura.
Included in the scope is the construction of permanent onshore infrastructure. This will supply gas to off-takers, industry, data centres and independent power producers to enable the production of 3 500MW of electricity within the Coega Special Economic Zone (SEZ).
A R2 billion dedicated LNG berth will be built by TNPA alongside the onshore facility, which is expected to be operational by 2035.
The development has been designated a national Strategic Integrated Project, giving the LNG terminal priority status within South Africa’s gas infrastructure planning.
Transnet Group Chief Executive, Michelle Phillips, said the project was a “milestone” that represents “a profound shift in how South Africa utilises its commercial seaports to support national energy security”.
“By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but actively constructing the foundational infrastructure necessary to support industrial growth and facilitate the delivery of reliable, lower-carbon energy into the national grid,” Phillips said.
© Now Media. This content, including images, is protected by copyright and may not be copied, reused, adapted or republished without permission. If you would like to discuss content-sharing or cooperation opportunities, please contact: editor@freightnews.co.za.
