The Transnet National Ports Authority (TNPA) has secured a major energy boost for South Africa by signing two key Terminal Operator Agreements that will bring 6,000 MW of Gas-to-Power into the country.
This milestone agreement, signed with Zululand Energy Terminal and FFS Tank Terminals, is a significant step in developing the South Dunes Precinct at the Port of Richards Bay.
“The agreements represent a leap forward in advancing South Africa’s energy and maritime sectors, underscoring TNPA’s strategic objectives to foster sustainable development and investment in critical infrastructure,” Transnet stated.
A Step Towards Energy Security and Industrial Growth
Chairperson of Transnet’s board, Andile Sangqu, said the agreements reflect South Africa’s commitment to economic growth and industrialisation through a transformative energy strategy.
“This marks a dual achievement: the introduction of a pioneering LNG import facility and the enhancement of our liquid bulk capacity through the redevelopment of FFS Tank Terminals,” he explained.
Sangqu also confirmed that the 6,000 MW of Gas-to-Power will be allocated as follows:
- 3,000 MW in line with the Integrated Resource Plan (IRP)
- 3,000 MW for Eskom’s new generation capacity in the Umhlathuze region
He emphasised that importing LNG will help sustain South Africa’s energy supply, especially as domestic gas resources become increasingly scarce.
Job Creation and Infrastructure Expansion
The LNG Import Terminal at the Port of Richards Bay will generate approximately 1,000 jobs, in addition to new opportunities during the construction of berth 207 and pipeline infrastructure.
TNPA Board Chairperson, Tshokolo Nchocho, highlighted the broader economic and strategic impact of the agreements:
“The establishment of South Africa’s first LNG Import Terminal represents a strategic response to our nation’s energy challenges.”
He added that securing a stable and diversified energy supply will support industries and strengthen economic resilience.
“By modernising existing infrastructure, this project enhances maritime fuel services and plays a crucial role in supporting global shipping operations, ensuring efficiency and competitiveness,” he said.
A Game Changer for South Africa’s Energy Sector
With power shortages and energy security remaining a top priority, the agreements signed by Transnet signal a bold step towards sustainable solutions.
By introducing LNG importation, South Africa will:
✅ Reduce dependence on coal
✅ Support Eskom’s new power generation projects
✅ Modernise maritime infrastructure
✅ Create thousands of jobs
✅ Position itself as a key player in global energy markets
This groundbreaking initiative marks a turning point in the country’s transition to cleaner energy, ensuring economic stability and industrial growth in the years to come.
