Transnet National Ports Authority (TNPA) has appointed the Vopak Terminal Durban & Transnet Pipelines (TPL) Consortium Venture as the preferred bidder to develop and operate a new Liquefied Natural Gas (LNG) terminal at the Port of Richards Bay.
TNPA announced the appointment in a statement on Thursday saying the selection of the company to design, develop, construct, finance, operate and maintain the terminal had followed a procurement process through a request for proposals.
The terminal operator will run the LNG terminal in the South Dunes Precinct at the Port of Richards Bay for 25 years in a public-private partnership with the private sector as the lead investor.
TNPA will invest in the common user port infrastructure, while the terminal operator will provide the terminal infrastructure.
TNPA said the development of the specialised terminal would be a game changer for the economic dynamics of the city and KwaZulu-Natal, while introducing a supply of alternative energy as the country battles the current energy crisis and transitions towards decarbonisation.
“TNPA is excited about the prospects this project brings, especially that this gas infrastructure project will be the first of its kind in South Africa,” said Moshe Motlohi, TNPA managing executive for Eastern Region ports.
“This is a testament to our dedication to promoting economic activity, job creation, and sustainable energy solutions.”
He said the milestone brings TNPA closer to its strategic goal of assisting the country with midstream LNG import infrastructure for markets in the KZN hinterland.
Vopak is a Dutch private company, listed on the Euronext Amsterdam stock exchange, and is a major player in the oil and gas sector including LNG infrastructure development and operation.
Vopak has a network of 78 terminals including gas, industrial, chemical and oil in 23 countries and has a strong footprint in supporting the global trade of oil and gas products and services.
TPL, founded in 1965, is a custodian of the country's strategic pipeline assets and is currently servicing the fuel and gas industries by transporting petroleum and gas products over varying distances.
TPL handles products including gas, crude oil, diesel, leaded and unleaded petrol and aviation fuels.
The project is in line with the Department of Mineral Resources and Energy’s Strategic Plan for 2020-25, which focuses on the development of the gas market as an alternative source of energy to meet limited energy supply.
It also supports the country’s Integrated Resources Plan and its gas-to-power generation targets.
Project timelines will see the commercial operation during 2027, with the next step being the signing of the terminal operator agreement, currently under negotiation.
