TRANSNET National Ports Authority (TNPA) added to its Liquefied Natural Gas (LNG) ambitions last week by issuing a Request for Proposals to appoint a terminal operator for a small-to-medium-scale LNG terminal at the Port of East London.
The successful bidder is expected to design, finance, develop, construct, operate, maintain and transfer the terminal back to the state-owned port authority after a 25-year concession period. Associated operational and safety systems form part of the project’s scope.
The terminal will be developed on a greenfield site of approximately 8,900 sqm located within the port’s West Bank precinct.
TNPA said the development is underpinned by demonstrated market interest and growing regional demand for natural gas. “Through its Expression of Interest process, TNPA received strong market response from potential operators, demonstrating market confidence in the LNG infrastructure at the Port of East London.
“The terminal is expected to provide a reliable energy solution for niche LNG consumers and industrial users in the Eastern Cape, while reinforcing the port’s role in enabling industrial growth and sustainable economic development.
“The project is also expected to drive much-needed job creation in the Eastern Cape, generating both direct and indirect employment opportunities,” TNPA said in a media statement.
East London port manager, Dr Sphiwe Mthembu, said, “This initiative represents a significant milestone in unlocking new investment opportunities within the port, further advancing its long-term growth and development objectives. The LNG terminal is expected to attract private sector investment, support the development of strategic energy infrastructure, and strengthen the port’s role as a catalyst for economic growth in the region. By creating an enabling environment for new industries and emerging trade opportunities, we are positioning the port to respond to evolving market needs while contributing to regional competitiveness and sustainable development.”
Earlier this year, TNPA signed a 25-year Terminal Operator Agreement with Ukwanda LNG (a JV between Tamasa Energy and the Strategic Fuel Fund) to construct an onshore LNG import and regasification facility paired with a dedicated TNPA-built berth at the Port of Ngqura. The project has an estimated investment value of R22 billion and is aiming for full operationalisation by 2035.
In May 2024, at the Port of Richards Bay, TNPA selected a consortium comprising Vopak Terminal Durban and Transnet Pipelines as the preferred bidder to develop the multi-million rand Zululand Energy Terminal (ZET) for LNG import and regasification.
