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It involves the design, development, financing, construction, operation and maintenance of the facility over a 25-year concession period Transnet National Ports Authority (TNPA) has signed a 25-year operator agreement to develop, construct and operate a major Liquefied Natural Gas (LNG) import terminal at the Port of Richards Bay’s South Dunes Precinct. TNPA confirmed the signing of two “major” Terminal Operator Agreements (TOA) – the first agreement has been signed with Zululand Energy Terminal, while the other agreement was signed with FFS Tank Terminals. On 15 December 2022, TNPA issued a Request for Proposal (RFP) to secure a terminal operator for the development of a LNG terminal in the South Dunes Precinct. Following an evaluation process in compliance with Section 56 of the National Ports Act (Act No 12 of 2005), Zululand Energy Terminals was appointed as the preferred bidder. The project involves the design, development, financing, construction, operation and maintenance of the LNG terminal over a 25-year concession period. The initiative supports the Gas to Power Programme of South Africa, aligning with the Department of Mineral Resources and Energy’s Strategic Plan (2020-25) to enhance energy security and transition to cleaner energy sources. TNPA also confirmed that it had finalised a 25-year concession TOA with FFS Tank Terminals for the development and operation of a liquid bulk terminal specialising in bunker fuels at the Port of Richards Bay. The facility, located at the former Engen bunker terminal, will focus on enhancing the port’s capacity for handling liquid bulk and fostering economic growth. TNPA is responsible for the safe, effective and efficient economic functioning of the national port system, which it manages in a landlord capacity. It provides port infrastructure and marine services at the eight commercial seaports in South Africa in the cities of Richards Bay, Durban, Saldanha, Cape Town, Port Elizabeth, East London, Mossel Bay and Ngqura. It operates within a legislative and regulatory environment and is governed by the National Ports Act (Act No 12 of 2005). the TNPA LNG project is aligned with the Department of Mineral Resources and Energy (DMRE) plans to deliver 6,000MW of Gas-to-Power in South Africa LNG terminal to create job opportunities, spur local economy TNPA said the development of these two terminals is a game changer in the economic landscape of the region. The LNG terminal alone is projected to create over 1,000 job opportunities during construction, operations including downstream business for communities surrounding the uMhlathuze region. The bunkering services terminal aims to generate around 50 direct and indirect jobs from the project initiation phase. Speaking at the signing ceremony held at South Pier in the South Dunes Precinct at Port of Richards Bay in KwaZulu-Natal, Andile Sangqu, Transnet Board chairperson, said the LNG terminal is a “critical response to the nation’s energy challenges.” “Overall, the TNPA LNG project is aligned with the Department of Mineral Resources and Energy (DMRE) plans to deliver 6,000MW of Gas-to-Power in South Africa. “This 6,000MW is split into 3,000MW as per Integrated Resource Plan (IRP) and 3,000MW for Eskom new generation in the UMhlathuze region. “By enabling the importation of Liquefied Natural Gas, we are promoting the development of sustainable source of energy to meet limited and depleting gas supplies,” he said. LNG terminal to play crucial role in addressing South Africa’s energy challenges Tshokolo Nchocho, TNPA Board Chairperson, said the establishment of South Africa’s first LNG Import Terminal represents a strategic response to the nation’s energy challenges. KwaZulu-Natal Premier Thami Ntuli hailed the signing of the two multibillion rand TOAs, saying they will advance the energy and maritime sectors in South Africa and help grow the country’s economy and spur the creation of much-needed jobs. “As detailed by Transnet already, this is a significant milestone in the development of the South Dunes Precinct at the Port of Richards Bay and is set to support the Gas-to-Power Programme of South Africa,” Ntuli said. “These two agreements are welcomed, as they are the fruit born out of the Zululand Energy Terminal (ZET), a strategic partnership between Vopak Terminal Durban (PTY) Ltd and Transnet Pipelines to develop, construct and operate a new Liquefied Natural Gas (LNG) Terminal in Richards Bay.” Ntuli said one of the most pleasing aspects of the agreement is expected to generate significant employment opportunities, while also fostering skills development and driving transformation in the maritime and energy sectors. “In this regard, the projects are expected to generate approximately 1,000 jobs, with additional opportunities created during the construction of berth 207 and pipelines,” he said. Acting TNPA Chief Executive, Phyllis Difeto, said collectively the projects contribute to the economic resilience of the uMhlathuze region, with significant job creation in construction, operations and port-related industries. |
