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South Africa plans LNG import terminal

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LNG Industry,

According to Reuters, Transnet is planning to launch a tender next year for South Africa’s first LNG import terminal at Richards Bay port, with first gas expected to arrive in 2024.

Transnet is a South African state-owned freight logistics firm, and operates gas pipelines, railway lines and ports across the country. It will lead the project after the World Bank’s International Finance Corp. agreed to provide US$2 million to help finalise the design, finance, construction and operation plans.

According to the Reuters, the project will require existing pipelines to be repurposed to transport gas between Durban and Johannesburg. Jabulani Sithole, Transnet oil and gas business manager, noted that the terminal could either be onshore or a floating storage and regasification unit (FSRU).

The business manager added that it is crucial to secure new gas supplies due to the fact that Sasol (which provides the majority of the country’s gas from Mozambique) has stated that it will see supply constraints from 2023 due to maturing fields at both Temane and Pande.

Sithole went on to say that a pre-feasibility study would look into the costs of the LNG import terminal, adding that Transnet would look to attract LNG suppliers like BP and Shell. He also said that Angola and Mozambique were possible LNG suppliers.

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