TRANSNET National Ports Authority (TNPA) has signed a 25-year terminal operator agreement with Ukwanda LNG, a joint venture between Tamasa Energy Group and the Strategic Fuel Fund.
The JV will develop an onshore Liquefied Natural Gas (LNG) regasification facility at the Port of Ngqura.
According to Transnet, the development of an onshore LNG regasification facility at the deepwater Port of Ngqura is a direct response to South Africa’s Just Energy Transition programme, which is set to unlock a planned 6,000 MW Gas-to-Power (GtP) pipeline. The LNG facility will serve as critical fuel infrastructure required to support the 3,000 MW GtP allocation, providing lower-carbon baseload electricity as part of the country’s energy mix.
The project features the establishment of a temporary Floating Unit. Included in the scope is the construction of permanent onshore infrastructure to supply gas to offtakers, such as industry, data centres and Independent Power Producers (IPPs) to enable the production of ~3,500 MW of electricity within the Coega Special Economic Zone (SEZ).
This project’s investment value is approximately R22 billion. It includes the construction of an R2 billion dedicated LNG berth by TNPA, taking place simultaneously with the development of the onshore facility. Full operation is targeted for 2035 to achieve energy supply security.
Transnet group chief executive, Michelle Phillips, said: “This milestone represents a profound shift in how South Africa utilises its commercial seaports to support national energy security. By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but actively constructing the foundational infrastructure necessary to support industrial growth and facilitate the delivery of reliable, lower-carbon energy into the national grid.”
The project is expected to create over 500 jobs during the construction period of approximately 36 months and 50 permanent jobs post construction. Transnet says such opportunities will further drive investment, skills development and industrial growth in the Eastern Cape.
Speaking on behalf of Ukwanda LNG, Professor Anna Mokgokong, Chairperson of Tamasa Energy Group, said: “The signing of this agreement is more than a procedural step; it reflects long-term conviction, disciplined effort and a shared belief in the strategic value of this project for South Africa’s energy future, logistics capability and economic development. For the Eastern Cape, this project represents infrastructure that can unlock jobs, skills development, local participation and renewed economic momentum, while supporting energy security and South Africa’s broader transition to a more diversified, lower-carbon energy mix.”
The development has been designated as a national Strategic Integrated Project, aimed at strengthening the country’s energy security by advancing strategic gas infrastructure required to stabilise national electricity supply.
The initiative is aligned to Transnet’s ongoing operational recovery and infrastructure-led growth under the Reinvent for Growth strategy. Through this Public-Private Partnership, TNPA continues to leverage on strategic collaborations and expertise to modernise port infrastructure, while enabling national development imperatives.
