State-owned port authority Transnet National Ports Authority (TNPA) signed a 25-year Terminal Operator Agreement with petroleum and petrochemical company WASAA Gases (WASAA) and the Central Energy Fund (CEF) joint venture (JV), on December 12, 2025, to develop and operate a new liquefied petroleum gas (LPG) terminal at the Port of Durban’s Island View Precinct.

This project has an investment value of about R1.4-billion, and its execution is “crucial for advancing South Africa’s Just Energy Transition programme”, which aims to shift the gas sector from fossil fuels to cleaner energies, while supporting the decarbonisation of key sectors, the TNPA notes.

The agreement supports Transnet’s ‘Reinvent for Growth’ strategy, which focuses on transforming the business through strategic partnerships and leveraging collaboration between public and private sectors to meet growing market demand.

The agreement follows a competitive bidding process, in terms of Section 56 of the National Ports Act, with TNPA appointing WASAA CEF JV as the preferred bidder.

Additionally, this move further expands the Port of Durban’s value proposition to diversify its commodity offerings and ensure long-term sustainability. Once operational, the terminal will reinforce the port’s status as a major hub for the Southern African Development Community region and a key transhipment point, connecting global markets.

The agreement will result in a 50 000 m2 LPG terminal storage and associated handling capacity – a comprehensive gas solution addressing growing demand, particularly in KwaZulu-Natal and the Eastern Cape hinterlands.

The terminal, which is expected to be completed by 2027, will have capacity to dispatch up to 800 m3/h of heated LPG mix. This will provide essential supplies to various industrial markets and produce specific grades suitable for residential use.

“Through this signed 25-year concession agreement, the Port of Durban will enhance its strategic position as a key national logistics hub. The terminal will not only benefit the local economy but will also enable access to clean energy and help reduce carbon emissions in the energy sector,” said TNPA acting chief executive Mohammed Abdool.

Further, the project will create opportunities for local suppliers during the development and implementation phases, supporting transformation. Black-owned, women-led, youth-led enterprises – as well as those operated by people living with disabilities – will benefit from industrial development related to terminal design, engineering and other associated services.

“WASAA is pleased to have entered into this agreement with TNPA. This partnership will provide us with the ability to assemble the requisite infrastructure network that is necessary to unlock the potential of LPG as a cleaner and viable energy source for residential, commercial and industry applications,” enthused WASAA CEF JV director Nokwanele Qonde.