EXCLUSIVE: South African ports new energy deal

The MoU between TNPA and the National Energy Regulator of South Africa (NERSA) focuses on improving the alignment of the port operator’s energy projects to South Africa’s power sector regulatory framework.

This includes the streamlining of licensing of both ongoing and proposed projects such as the the proposed three bulk liquefied natural gas (LNG) terminals at Richards Bay, Ngqura and Saldanha ports.

According to NERSA the agreement creates a partnership between the two entities that “will ensure alignment in the licensing and operation of petroleum facilities, LNG facilities, as well as electricity generation, distribution and transmission facilities.”

Energy supply chain

TNPA, which is a subsidiary of state-owned Transnet, is positioning its eight commercial seaports across South Africa’s 2,798 km-long coastline, including Richards Bay, Durban, Cape Town and Saldanha, as both consumers and producers of green energy solutions, supply and storage infrastructure.

“We value strategic collaborations, which are even more vital in the current geopolitical climate, where boosting energy independence and security is an absolute necessity,” says Phyllis Difeto, acting chief executive, TNPA.

“The agreement aligns with our strategic plan of ensuring security of supply and unlocking global opportunities for sustainable impact,” she adds.

Southern Africa is transforming its maritime gateways into key energy hubs at a time the world is moving forward with global ‘Just Energy Transition’ initiative.

For example, TNPA has recently unveiled five companies including KZN Oils, Linsen Nambi, Protank, Bidvest/Mnambithi Consortium and KNGM Engineering, as preferred bidders for the ZAR 17 billion (GBP 748 million) liquid bulk and green fuel terminals project at the Port of Richards Bay under a fund-design-develop-construct-operate-maintain-transfer model over a 25-year concession period.

TNPA says the facility is expected to boost South Africa’s liquid bulk handling capacity and play a critical role particularly in the transportation of fuel especially in the coming days when the country would be nearing deadline for achieving its goal to transition to more renewable and sustainable fuel options.

Gas-to-power

Furthermore, the operator has linked its LNG infrastructure development at some of its ports to South Africa’s State-driven gas-to-power programme that calls for the generation of at least up to 3000MW by 2030.

TNPA’s collaboration with NERSA is also significant as the former pursues a strategy to effectively manage energy costs and reduce emissions through the diversification of its energy mix under the Renewable Energy Purchase Programme (REPP), an initiative targeting the deployment of at least 100MW across all eight South African commercial seaports in the long term.

For instance, at the port at the Port of East London, TNPA is developing a 3 MW solar-powered renewable plant under design, build, test, commission, operate and maintain model.

Other projects under the REPP include the proposed Port of Ngqura’s 7 MW renewable plant, and the ongoing 20 MW plant in the Port of Richards Bay that is being developed by the Amulet Group Consortium.

This new collaboration between TNPA and NERSA puts South Africa’s eight seaports right at the centre of the country’s ambitious endeavour to not only transform but also ensure security of its sustainable energy supply.