South Africa may get new LNG terminal
Transnet SOC Ltd has entered into a cost-sharing agreement with World Bank Group member IFC to carry out a feasibility study for the development of an LNG storage and regasification terminal at the Port of Richards Bay.
The LNG terminal will be developed by private investors that will be selected through a competitive process to own a majority stake in a planned special purpose vehicle (SPV). Transnet, which manages Transnet Port Terminals (TPT) Richards Bay, and other SOCs will also participate in the SPV. The facilities are expected to be operational by 2024.
The feasibility study will also look at the re-purposing of Transnet pipelines for natural gas transmission to inland markets.
LNG expansion
The Richards Bay Natural Gas Network (NGN) project incorporates the LNG storage and regasification terminal in the Port of Richards Bay, plans for the re-purposing of Transnet’s Lily Pipeline and Durban-Johannesburg Pipeline for the transmission of natural gas, and the establishment of virtual pipelines for LNG to be transported to various markets by rail and road by 2024.
The NGN project is expected to complement the delivery of LNG to new markets in the Eastern Cape and Western Cape provinces through the ports of Ngqura and Saldanha Bay respectively, and will support government’s future gas-to-power projects.
The expected expansion of South Africa’s natural gas networks will help modernise the energy usage in the region and increase access to cleaner, reliable and affordable natural gas for end consumers.
The NGN project IFC has committed US$2m as part of the cost-sharing agreement.
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