South Africa’s State-owned Transnet National Ports Authority (TNPA) has signed a 25-year terminal operator agreement with Zululand Energy Terminals (ZET) for the development of the country's first liquefied natural gas (LNG) import terminal at the Port of Richards Bay's South Dunes precinct.

ZET is a joint venture between Vopak Terminal Durban and Transnet Pipelines, which was selected in 2024 as the preferred bidder to develop, construct and operate a new LNG terminal at the deepwater KwaZulu-Natal port.

In a statement, TNPA said the LNG terminal would have an initial yearly throughput of at least two-million tons, but that there was potential to raise the terminal’s yearly volumes to above five-million tons over the concession period.

A commercial operation date of 2028 has been indicated for the first phase, which will include a floating storage unit and an onshore regasification system.

Acting TNPA CEO Phyllis Difeto said the terminal would attract R7-billion in investment to the Port of Richards Bay and position it as “a premier gateway for LNG imports”.

TNPA also has aspirations to attract LNG terminals to the Port of Saldanha, in the Western Cape, as well as the Port of Ngqura, in the Eastern Cape.

Difeto added that the development was in line with South Africa’s plan to introduce at least 6 000 MW of gas-to-power projects by both Eskom and independent power producers in KwaZulu-Natal.

Meanwhile, TNPA also signed a R123-million terminal operator agreement for a liquid bulk terminal to be built and operated also at the Port of Richards Bay by FFS Tank Terminals.

The development will enhance the port’s capability to handle liquid bulk cargo, particularly bunker fuels essential for maritime logistics.

“Following the commercial operationalisation of the terminal this February 2025, the agreement will result in a modernised liquid bulk facility that efficiently delivers bunkering services to various vessels inclusive of bulk carriers, container ships and tankers whilst ensuring a reliable fuel supply over a 25-year concession,” TNPA said.