Transnet National Ports Authority (TNPA) and the National Energy Regulator of South Africa (Nersa) have signed a Memorandum of Understanding (MoU) to promote sustainable energy and infrastructure development across the country.
Under the agreement, Nersa and TNPA will collaborate to ensure alignment in the licensing and operation of petroleum facilities, liquefied natural gas (LNG) facilities, as well as electricity generation, distribution and transmission facilities in line with the Integrated Resources Plan and the SA Renewable Energy Masterplan.
To ensure the effective implementation of the MoU, governance structures will be established through steering committees with workstreams focused on technical, regulatory or strategic aspects.
TNPA said the signing of the agreement marked a milestone in accelerating the country’s Just Energy Transition, as ports are an integral part of this programme.
“TNPA welcomes the signed MoU with Nersa. We value strategic collaborations, which are even more vital in the current geopolitical climate, where boosting energy independence and security is an absolute necessity,” said acting TNPA chief executive Phyllis Difeto.
“The agreement aligns with our strategic plan of ensuring security of supply and unlocking global opportunities for sustainable impact,” Difeto said.
“Ports play a critical role in the importation of various energy sources, as well as components importation, which would support SA's energy aspirations and requirements.”
TNPA is progressing with its Gas-to-Power programme, which aims to introduce three bulk LNG terminals at the ports of Richards Bay, Ngqura and Saldanha. Work is under way for the operationalisation of the country’s first LNG import terminal at the Port of Richards Bay by 2028, while Ngqura will be operationalised next.
There is also work planned for small-scale LNG developments across other ports to satisfy the growing demand for gas. This is being supplemented by the liquid fuels programme, including plans for the Ngqura tank farm, for which a request for proposal has already been published.
The 10-year agreement is set to ensure compliance with the regulatory framework and promote investment in the national port system.
Nersa Full-Time Regulator Member, Muzi Mkhize, who is primarily responsible for petroleum pipelines regulation, said the signing of the MoU was imperative due to the organisations’ dual mandates within the ports.
“The two institutions need to ensure that sufficient import capacity is available and that the port system functions efficiently, especially given the country’s reliance on imports to meet the liquid fuels demand and the anticipated LNG imports in the context of the country’s socio-economic challenges and developmental goals,” Mkhize said.
“The recent Fuels Industry Risk Assessment, in which both Nersa and TNPA participated, also highlighted key supply logistics constraints related to port infrastructure that need to be urgently addressed, again emphasising the need for coordination between the two parties and alignment of regulatory frameworks,” he added.
