Port of Richards Bay LNG Import Terminal

The Gas Masterplan Base Case Report (2022) and draft of 2024 identifies the South African ports as a key engine in the gas masterplan for the country. In response to the current electricity and energy mix challenges facing South Africa, Transnet National Ports Authority (TNPA), has embarked on a strong strategic position “as an enabler” of securing and supplying Liquified Natural Gas to the Port of Richards Bay (KwaZulu-Natal). This project provides feasible and sufficient opportunities for the gas to power industry to implement the Department of Mineral Resources and Energy’s (DMRE) plans of alleviating the electricity generation limitation.

Section 11 of the National Ports Act No. 12 of 2005 (the Act) details the functions of the Authority (TNPA) which includes the provision of basic port infrastructure such as berths and bulk services. Based on the technical study done by Transnet with respect to the suitable location of LNG import terminals in South Africa, the Port of Richards Bay was amongst the three ports that were identified for LNG importation.

The appointed Section 56 Concessionaire (Vopak/TPL) has indicated a strong demand of 2 million tons per annum from 2027 and potential to scale-up to over 5 million tons per annum from 2032-35.

The current solution (LNG Terminal) being proposed for TNPA Port of Richards Bay, is also supported by the LNG demand forecast of 2.2 million tonnes per annum (Mtpa) in the short term (2027), scaling to between 4.0 and 6.0 Mtpa in the long term (2042), in South Africa. A Baseline Market Demand Study (BMDS) was subsequently undertaken (Mott MacDonald, 2019) to develop an initial estimate of the aggregate market demand.