Transnet seeks bidders for Lilly pipeline repurposing
State-owned Transnet Pipelines has issued a request for proposals (RfP) from interested parties to enter into an agreement to secure pipeline capacity in the repurposed Lilly pipeline.
The repurposing of the Lilly pipeline aligns with Transnet’s Natural Gas Network Strategy, which seeks to enhance energy security by using existing infrastructure for the transportation of liquefied natural gas (LNG).
The project will connect the pipeline to the Zululand Energy Terminal at the Port of Richards Bay, which will enable the supply of LNG to key industrial markets across KwaZulu-Natal, Mpumalanga and Gauteng.
The pipeline currently transports methane-rich gas, which is used by heavy industries in South Africa.
The repurposing initiative is a significant step towards enabling the transmission of regasified LNG into the South African market to support the country’s energy transition and economic growth, Transnet Pipelines says.
“By leveraging the Lilly pipeline’s strategic positioning, we aim to provide reliable access to LNG while fostering industrial development,” says Transnet Pipelines acting CE Mumtaz Peters.
“This initiative is a key milestone in developing South Africa’s natural gas sector and ensuring the efficient transportation of cleaner energy sources,” she comments.
The RfP process invites companies or consortia with proven experience in gas aggregation and transportation to submit proposals detailing their capacity requirements, commercial terms and financial standing.
The deadline for submissions is February 28. All proposals must be submitted to TPL.Commercial@transnet.net, and interested parties may submit queries to the same email address by February 18.
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