- The TNPA will fast-track the LNG import terminal project at Richards Bay to meet its 2027 import target.
- South Africa eyes at least 6,000MW of new gas-to-power projects to reduce record electricity outages.
South Africa‘s first Liquefied Natural Gas (LNG) import terminal at Richards Bay will cost over 7 billion rand ($372 million). A senior Transnet official told Reuters that the terminal aims to import 2 million tonnes annually, double the initial amount slated. In January, the South African government awarded a long-term concession for the LNG project to a consortium led by Dutch terminal operator, Vopak. This is as it eyes at least 6,000MW of new gas-to-power projects to reduce record electricity outages.
Oil and gas sector specialist at Transnet National Ports Authority (TNPA), Linda Myeza, said the LNG terminal, situated along South Africa’s east coast, will initially import 2 million tons per annum (mtpa) of LNG by 2027 before ramping up to 5 mtpa. “It is north of 7 billion rands overall. The whole total project and Transnet National Ports Authority (TNPA) will be co-investing,” Myeza added. Last year, Sasol, a petrochemical firm, sent notices warning that its methane-rich gas supply would end from June 2026 as its gas fields in Mozambique deplete.
Sasol transports almost all of South Africa’s gas needs of 190 petajoules per year from Mozambique to its Secunda plant via the Rompco pipeline. Synthetic gas then leaves Secunda via the Lilly pipeline for customers in the eastern coastal region of KwaZulu Natal. The CEO of Ardagh Glass Packaging Africa, which has turned to trucked LNG to help fuel its plants, said if a gas supply crunch happens, it would precipitate a national crisis. While referring to power outages, also known as load shedding, the Chief Executive, Paul Curnow, said that unlike the reduction of power during load shedding, this fuel source will have zero supply, and operations will likely close.
The TNPA said they will fast-track the Richards Bay LNG project to meet its 2027 import target. Myeza said there is a plan for new LNG import hubs at Ngqura and Saldanha Bay deep-water ports. In addition, four other ports are being considered to host small- and medium-scale LNG facilities to expand gas uptake. “The fittest horse is the LNG Matola terminal. Richards Bay will come at some point in time, but it is unlikely to be this decade,” Human said.