South Africa’s State-owned Transnet National Ports Authority (TNPA) has announced that it has selected a public-private consortium as the preferred bidder to develop and operate a liquefied natural gas (LNG) terminal at the Port of Richards Bay’s South Dunes precinct. 

The Vopak & TPL Consortium Venture was selected following a bidding process for an entity to design, develop, construct, finance, operate, and maintain the LNG terminal for a period of 25 years.

The project is scheduled to enter into commercial operation during 2027, with the next step being the signing of the terminal operator agreement, which TNPA said was currently under negotiation. 

Vopak is a Dutch company with a network of 78 terminals, including LNG terminals, in 23 countries, while TPL is the State-owned entity responsible for South Africa’s strategic fuel pipeline assets.

TNPA will invest in the common user port infrastructure, while the terminal operator will provide the terminal infrastructure.

The appointment came only days after the Department of Mineral Resources and Energy (DMRE) published a draft Integrated Resource Plan (IRP 2023) for electricity, which includes a large allocation for new land-based gas-to-power (GTP) facilities.

The draft IRP 2023, which is out for public comment, has a specific allocation for a 3 000 MW GTP plant to be developed by Eskom at Richards Bay, in KwaZulu-Natal.

A further 3 000 MW has been allocated for GTP facilities to be built by independent power producers, with 2 000 MW currently the subject of a site-agnostic bidding process, with Richards Bay a possible location for some of the bidders.

TNPA described the project as being in line with the 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”, while also supporting the country’s IRP targets. 

“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,” TNPA managing executive for the Eastern Region ports Moshe Motlohi said in a statement.