JOHANNESBERG, May 29 – South Africa’s Transnet has signed a 25-year terminal operator agreement with Ukwanda LNG to develop a liquefied natural gas import terminal at the Port of Ngqura in the Eastern Cape.
The project will include an onshore regasification facility and a dedicated LNG berth at one of the country’s deepest commercial ports, according to a statement released by Transnet national ports authority. Ukwanda LNG is a joint venture between Tamasa Energy Group and the Strategic Fuel Fund, South Africa’s state-owned energy reserve company.
The agreement comes as South Africa continues to expand its use of natural gas as part of efforts to reduce reliance on coal-fired power generation, which still supplies most of the country’s electricity.
Transnet said the project is expected to attract investment of around 22 billion rand ($1.34 billion), with full operations targeted for 2035. Transnet Group Chief Executive Michelle Phillips described the agreement as a major step in repositioning the country’s ports to support long-term energy security and infrastructure development.
South Africa has seen growing interest in LNG projects in recent years as companies move to tap rising energy demand and support the country’s energy transition plans.
Global commodities trader Vitol is backing a separate $3 billion LNG project in Durban, while Dutch storage company Vopak recently delayed a final investment decision on another planned LNG terminal in the country until 2028.
