Transnet National Ports Authority (TNPA) has signed two terminal operator agreements for the development of South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay. The project is linked to government’s Just Transition programme, which includes plans for at least 6 000 MW of gas-to-power capacity.

TNPA has signed a 25-year agreement with Zululand Energy Terminals for the operation of the LNG import terminal. The facility is expected to support independent power producers and Eskom in integrating gas-fired generation into the national energy mix. The import terminal is part of a broader plan to expand gas infrastructure in South Africa and is expected to play a role in securing a stable gas supply for industrial and power generation applications.

“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 million tonnes per annum over the concession period,” the ports authority said.

TNPA has also signed a contract worth R123 million with FFS Tank Terminals to develop a liquid bulk terminal to handle fuels, including bunker fuel for maritime operations. The FFS Tank Terminals facility will provide bunkering services to vessels including bulk carriers, container ships and tankers.