Quick Poll

Transnet intends to hold a tender for a new Richards Bay LNG terminal

The push to design, build, finance, and operate the LNG terminal comes in the midst of some of Africa’s most severe power outages.
Transnet, South Africa’s state-owned freight logistics firm, said on Thursday that it will go to market within weeks for a new liquefied natural gas (LNG) terminal to be built at the east coast Richards Bay port by 2026.

The push to design, build, finance, and operate the LNG terminal coincides with some of Africa’s worst power outages, as the country tries to reduce emissions from coal-fired power plants, which supply the majority of its electricity needs.

“TNPA is accelerating the implementation of this project to assist with the country’s energy needs and to ensure that it provides the transition energy required for SA’s decarbonization,” said Captain Dennis Mqadi, Richards Bay port manager, in a statement.

He stated that TNPA plans to approach the market in the coming weeks with a request for proposal, ensuring that the project can be “realised” by 2026.

When the request for information, the first step in a tender process, was launched in early February, around 19 companies expressed interest in participating, including major gas developers and operators of gas infrastructure in America, Asia, Europe, and the Middle East.

The project will almost certainly compete with another LNG terminal under construction in neighbouring Mozambique, where South African energy company Gigajoule, in collaboration with TotalEnergies, is planning a new $550 million(R 8.5bn) Matola LNG import terminal.

The Rompco pipeline, which connects Sasol’s Tande and Temane fields in southern Mozambique, currently supplies the majority of South Africa’s gas needs.

According to the 2021 annual report of the domestic industry body IGUA, South Africa currently faces a gas supply shortfall of approximately 170 petajoules per year.



South Africa’s primary source of financial tools and information

Contact Us



Rateweb strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions.

Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles.