South Africa picks LNG terminal developer

South Africa has picked Vopak Terminal Durban & Transnet Pipeline to develop and operate an LNG terminal in the port of Richards Bay, according to the state-owned Transnet National Ports Authority (TNPA).

Following a procurement process through a Request for Proposals, TNPA has appointed the Vopak & TPL consortium to design, develop, construct, finance, operate, and maintain the LNG terminal in the South Dunes Precinct at the Port of Richards Bay for 25 years. Project timelines will see the commercial operation during 2027.

A view of the Port of Richards Bay in South Africa. 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 liquefied natural gas (LNG) terminal at the port. (Image: Transnet National Ports Authority)

“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 the Eastern Region ports.

Vopak is a Dutch private company, listed on the Euronext Amsterdam stock exchange, and is a major player in the oil & 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 & gas products and services. Transnet Pipelines (TPL) is a South African public company established in 1965.

This LNG project is in line with the Department of Mineral Resources and Energy’s (DMRE’s) Strategic Plan for 2020-25, which focuses on the development of the gas market as an alternative source of energy to meet limited and depleting 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 which is currently under negotiation.