The Transnet National Ports Authority (TNPA) has signed two key Terminal Operator Agreements that will mean 6,000 MW of Gas-to-Power in South Africa.
The TNPA said that it has achieved a key milestone in the development of the South Dunes Precinct at the Port of Richards Bay through the two agreements.
The first agreement for Liquefied Natural Gas (LNG) was signed with Zululand Energy Terminal, while the other agreement was signed with FFS Tank Terminals.
“The agreements represent a leap forward in advancing South Africa’s energy and maritime sectors, underscoring TNPA’s strategic objectives to foster sustainable development and investment in critical infrastructure,” Transnet said.
Andile Sangqu, Transnet Board chairperson, said the agreements illustrated South Africa’s commitment to economic growth and industrialisation through energy transformation.
“They represent a dual achievement, the introduction of a pioneering LNG import facility and the enhancement of our liquid bulk capacity through the redevelopment of FFS Tank Terminals,” Sagqu explained.
“Overall, the TNPA LNG project is aligned with the Department of Mineral Resources and Energy (DMRE) plans to deliver 6,000 MW of Gas-to-Power in South Africa,” he added.
“This 6,000 MW is split into 3,000 MW as per Integrated Resource Plan (IRP) and 3,000 MW for Eskom new generation in the Umhlathuze region.”
Around 1,000 more jobs
Sagqu said that by enabling the importation of Liquefied Natural Gas, Transnet is promoting the development of sustainable sources of energy to meet limited and depleting gas supplies.
He emphasised that the LNG Import Terminal is expected to generate approximately 1,000 jobs and additional opportunities emerging during the construction of berth 207 and the necessary pipeline infrastructure, demonstrating that they are committed to building a sustainable workforce for the future.
Tshokolo Nchocho, TNPA Board chairperson also said the agreements mark significant progress in advancing the country's energy security, economic growth and the transformation of Transnet’s port infrastructure.
“The establishment of South Africa’s first LNG Import Terminal represents a strategic response to our nation’s energy challenges,” Nchocho noted.
“By securing a stable and diversified energy supply, we are ensuring that our industries and communities have the power they need to thrive,” he added.
Lastly, Nchocho said that by modernising existing infrastructure, this project not only enhances maritime fuel services but also plays a critical role in supporting global shipping operations, ensuring efficiency and competitiveness in an evolving energy landscape.
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