Transnet receives a favourable response to its plans to develop an LNG terminal

TRANSNET National Ports Authority (TNPA) said yesterday that it had received a favourable response from industry on its plans for a liquified natural gas (LNG) terminal at the Port of Richards Bay and would issue a request for proposal “within weeks”.

The project comes as the Department of Mineral Resources and Energy’s Strategic Plan for 2020-25 focuses on the development of the gas market as an alternative source of energy to meet limited and depleting energy supply in South Africa, as Eskom battles to keep the lights on.

The country’s Integrated Resources Plan too has a gas power generation target of 3 000MW by 2027.

“Approximately 19 companies responded to the RFI (request for information). The response included major developers and operators of gas infrastructure in South Africa, Europe, Asia, America and the Middle East,” TNPA said in a statement.

The RFI targeted entities that might be interested to design, develop, construct, finance, operate, maintain and transfer an LNG terminal in the South Dunes Precinct at the Port of Richards Bay, in KwaZulu-Natal.

Captain Dennis Mqadi, TNPA Richards Bay port manager, said they were satisfied with the response received from the interested developers and operators, which were entities with “incredible experience to undertake this development”.

“TNPA is accelerating the implementation of this project to assist with the country’s energy needs and ensure that it provides the transition energy required towards SA’s decarbonisation.

“To that end, TNPA intends to approach the market in the coming weeks with a request for proposal, which will ensure that the project can be realised within the 2026 time-frame that it is required,” he said.

The request for proposal tender process would be an open and fair bidding process, the utility said.

In 2019 Transnet, which operates gas pipelines, railway lines and ports in South Africa, said it would lead the project after the World Bank’s International Finance pledged $2 million (R30m) to help finalise design, finance, construction and operation plans.

At the time the state-owned entity said first gas was expected to land in 2024. The project required the re-purposing existing pipelines to transport gas between the city of Durban and the commercial hub of Johannesburg.