Transnet, IFC Plan LNG Terminal

Feasibility Study for Richards Bay Gas Network

Infrastructure company Transnet SOC has partnered with the International Finance Corp. to explore the potential for constructing an LNG storage and regasification terminal at the Port of Richards Bay in South Africa.
The partners will conduct a feasibility study into the potential for a Richards Bay Natural Gas Network project that will greatly expand the country’s gas transmission and export propsects. If the outlook is positive, Transnet SOC expects the facility to be operational by 2024.
“This ground-breaking initiative is intended to unlock a backbone of the country’s natural gas network infrastructure to serve existing and growing gas markets, consisting largely of industrial and commercial off-takers located in KwaZulu-Natal, Mpumalanga, Free State and Gauteng provinces. The aim is to facilitate private sector investment  and partnerships with other state-owned companies for the development of South Africa’s natural gas infrastructure,” a spokesperson for Transnet said.
Under the terms of a cost-sharing agreement, IFC has committed to complete feasibility study, establish a planned special purpose vehicle, and inform the market of the transparent and public process to tender.
Photo: Richards Bay. Credit: TSL