Transnet National Ports Authority (TNPA) has signed two terminal operator agreements for the development of the country's first Liquefied Natural Gas (LNG) import terminal and a liquid bulk terminal at the Port of Richards Bay.
TNPA said it had signed an LNG import terminal operator agreement with Zululand Energy Terminals and a contract worth over R123 million with FFS Tank Terminals to build and operate a liquid bulk terminal.
The import terminal agreement, which is effective for 25 years, contributes to the government's Just Transition programme, which aims to introduce at least 6 000 MW of gas-to-power projects to meet the country’s limited and depleting energy supply.
The liquid bulk terminal enhances the port’s capability to handle liquid bulk cargo, particularly bunker fuels, essential for maritime logistics.
TNPA said in a statement that the signing of the contracts was in line with its pursuit of private sector partnerships to align its logistics business with key commodities traded in the economy.
“This roadmap expands the Port of Richards Bay's value proposition, positioning it as a critical node in the transport network. This move is set to increase the port's capacity for handling liquid bulk commodities and reinforce its status as a premier gateway for LNG imports,” TNPA said.
Acting TNPA Chief Executive, Phyllis Difeto, speaking at the signing ceremony on Monday, said the milestone underscored the ports authority’s commitment to transforming the country’s logistics sector and being responsive to national energy goals.
“Collectively, the projects contribute to the economic resilience of the uMhlathuze region, with significant job creation in construction, operations and port-related industries. These initiatives highlight our commitment to transformation and workforce empowerment.”
TNPA said the operationalisation of the import terminal was essential to enable gas-to-power initiatives for both independent power producers and Eskom as outlined in the country’s energy plans.
“With TNPA’s investment boost of just over R7 billion, the projected volume throughput for the LNG import terminal is at least two million tonnes per annum and could potentially reach over five mtpa over the concession period,” the ports authority said.
The FFS Tank Terminal’s facility will provide bunkering services to vessels, including bulk carriers, container ships and tankers, while ensuring a reliable fuel supply to the country over its 25-year concession period.
TNPA said the terminal developments were a game changer for the regional economy.
“The LNG terminal alone is projected to create over 1 000 job opportunities during construction, downstream business for communities surrounding the uMhlathuze region, while the bunkering services terminal aims to generate around 50 direct and indirect jobs from the project initiation phase,” the ports authority said.
