The global seaborne gas trading map is set for a shake-up with news of the first LNG import terminal in South Africa.
Richards Bay is poised to be South Africa’s liquid fuel industrial hub after Transnet National Ports Authority (TNPA) signed two strategic terminal operator agreements for the development of the country’s first LNG import terminal and a liquid bulk terminal at the Port of Richards Bay’s South Dunes precinct.
The signed agreement with Zululand Energy Terminals for 25 years is in line with the government’s aims to introduce at least 6,000 MW of gas-to-power projects to meet the country’s limited and depleting energy supply.
Phase one of the LNG terminal will yield a 2m tonnes per annum capacity, potentially growing to 5m tonnes.
The liquid bulk terminal, meanwhile, will be operated by FFS Tank Terminals and will serve the growing demand for bunker fuels in the region.
“The development of these two terminals is a game changer in the economic landscape of the region,” Transnet stated in a release.