TNPA signs terminal operator agreement to advance LNG development in South Africa
Transnet National Ports Authority (TNPA) has signed a landmark 25-year terminal operator agreement with Ukwanda LNG, a strategic joint venture between Tamasa Energy Group and the Strategic Fuel Fund, to develop an onshore Liquefied Natural Gas (LNG) regasification facility at the Port of Ngqura, positioning the Eastern Cape as a strategic energy hub while advancing South Africa’s energy security and industrial growth.
The development of an onshore LNG regasification facility at the deepwater Port of Ngqura is a direct response to South Africa’s Just Energy Transition programme, which is set to unlock a planned 6 000 MW Gas-to-Power pipeline. The LNG facility will serve as critical fuel infrastructure that is much needed to support 3000 MW gas-to-power allocation, providing lower-carbon baseload electricity required to complement the country’s growing renewable energy mix.
The project features the establishment of a temporary Floating Unit. Included in the scope is the construction of permanent onshore infrastructure to supply gas to off-takers, industry, Data Centres and Independent Power Producers to enable the production of ~3,500MW of electricity within the Coega Special Economic Zone (SEZ).
This project boasts an investment value of approximately R22billion. It will see the construction of the R2billion dedicated LNG berth by TNPA happening simultaneously with the development of the onshore facility, targeting full operationalisation by 2035 to achieve security of supply for energy.
The initiative is aligned to Transnet’s ongoing operational recovery and infrastructure-led growth under the Reinvent for Growth strategy. Through this Public-Private Partnership, TNPA continues to leverage on strategic collaborations and expertise to modernise port infrastructure, while enabling national development imperatives.
Transnet Group Chief Executive, Michelle Phillips said: “This milestone represents a profound shift in how South Africa utilises its commercial seaports to support national energy security. By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but actively constructing the foundational infrastructure necessary to support industrial growth and facilitate the delivery of reliable, lower-carbon energy into the national grid.”
The project is expected to create over 500 jobs during the construction period of approximately 36 months and 50 permanent jobs post construction. Such opportunities will further drive investment, skills development and industrial growth in the Eastern Cape.
Speaking on behalf of Ukwanda LNG, Professor Anna Mokgokong, Chairperson of Tamasa Energy Group, said: “The signing of this agreement is more than a procedural step; it reflects long-term conviction, disciplined effort and a shared belief in the strategic value of this project for South Africa’s energy future, logistics capability and economic development. For the Eastern Cape, this project represents infrastructure that can unlock jobs, skills development, local participation and renewed economic momentum, while supporting energy security and South Africa’s broader transition to a more diversified, lower-carbon energy mix.”
This development has been designated as a national Strategic Integrated Project, aimed at strengthening the country’s energy security by advancing strategic gas infrastructure required to stabilise national electricity supply.
