This is to establish the country's inaugural liquefied natural gas (LNG) import terminal at Richards Bay's South Dunes precinct. The first phase of the project is set to be operational by 2028 and will feature a floating storage unit alongside an onshore regasification system.

This groundbreaking initiative aligns with SA's energy transition strategy, contributing to the gas-to-power programme of the Department of Mineral Resources and Energy. The LNG terminal will be a key element in the country's efforts to enhance energy security and move towards cleaner energy sources, as outlined in the 2020–2025 Integrated Resource Plan.

Transnet National Ports Acting Chief Executive Officer, Dr Phyllis Difeto, spoke about the project's significance, describing it as transformational for both energy infrastructure and the region's economic development. "This LNG terminal is not only vital for SA’s decarbonisation strategy but will also create a sustainable energy future," she said.

The terminal will strengthen the Port of Richards Bay, optimising its capacity to handle liquid bulk operations and boosting its competitiveness within the Southern African region. Difeto highlighted that over $371 million in investments would be injected into the project, underscoring the importance of public-private collaboration.

The development promises significant economic benefits, including the creation of around 1 000 direct jobs, along with additional employment in local services. It is expected to foster growth, stimulate the local economy, and enhance SA’s position as a regional energy hub.

With the completion of this LNG project, Richards Bay is poised to become a strategic maritime and energy centre, reinforcing the country’s energy security while contributing to broader socio-economic development.

--ChannelAfrica--