Transnet National Ports Authority (TNPA) has entered into a 25-year terminal operator agreement with Ukwanda LNG, a joint venture between Tamasa Energy Group and the Strategic Fuel Fund. The agreement will support the development of an onshore liquefied natural gas (LNG) regasification facility at the Port of Ngqura. The project aims to strengthen energy supply, support industrial activity, and establish the Eastern Cape as an important energy location.
The planned LNG regasification facility at the Port of Ngqura supports South Africa’s Just Energy Transition program, which includes a proposed 6,000 MW gas-to-power pipeline. The facility will provide the fuel infrastructure needed for a 3,000 MW gas-to-power allocation and help supply the lower-carbon baseload electricity required alongside the country’s expanding renewable energy capacity.
The project includes a temporary floating unit as well as permanent onshore infrastructure that will supply gas to industrial users, data centers, independent power producers, and other customers. The development will support the generation of approximately 3,500 MW of electricity within the Coega Special Economic Zone.
The project carries an estimated investment value of R22 billion. TNPA will build a dedicated LNG berth valued at R2 billion while Ukwanda LNG develops the onshore facility. The partners aim to have the project fully operational by 2035 to support long-term energy supply.
The project supports Transnet’s operational recovery efforts and infrastructure development plans under its Reinvent for Growth strategy. Through this public-private partnership, TNPA is working with industry partners to improve port infrastructure while supporting broader economic and development goals.
Transnet Group Chief Executive Michelle Phillips said the agreement highlights the growing role of commercial ports in supporting South Africa’s energy needs. She noted that TNPA is carrying out its responsibilities as a port landlord while helping to develop the infrastructure needed for industrial growth and more reliable lower-carbon energy supply.
The project is expected to create more than 500 jobs during the estimated 36-month construction period and around 50 permanent positions once completed. It is also expected to encourage investment, skills development, and economic activity in the Eastern Cape.
Professor Anna Mokgokong, Chairperson of Tamasa Energy Group, said the agreement reflects years of commitment and confidence in the project’s value for South Africa’s energy sector, logistics network, and economy. She added that the development could create jobs, support skills development, increase local participation, and contribute to energy security while helping diversify the country’s energy mix.
The government has designated the project as a Strategic Integrated Project. It forms part of broader efforts to strengthen South Africa’s energy security through the development of gas infrastructure needed to support a more stable electricity supply.
source: maritimafrica.com
African Maritime Council