R300m terminal ignites SA LPG market

Transport and logistics providers are being encouraged to invest in modern equipment to serve the South African LPG market. Growth is being sparked by the construction of a R300-million LPG import terminal in Saldanha Bay. The terminal, with a storage capacity of 8 000 metric tons (MT), is being built by Cape Town-based Avedia Energy. It will increase South Africa’s existing import LPG storage capacity by at least 80%, according to the company. Domestic demand for LPG has outstripped local production over the past six years, leading to shortages. “Currently South Africa consumes about 350 000 MT of LPG per annum, with some 30% attributed to the industrial sector,” says Atose Aguele, managing director of Avedia Energy. The annual local production averages around 300 000 MT. An additional 60 000 MT are being imported annually from the Arabian Gulf and West Africa, via the Richards Bay and Port Elizabeth terminals, according to Aguele. “We estimate a required investment of some R5 billion across the entire local LPG infrastructure over the next 10 years in order to facilitate and support a sustainable LPG industry in South Africa,” he says. CAPTION Loading Avedia Energy LPG tanks … growing demand.