South Africa to Build Its First LNG Import Terminal

South Africa is taking a major step toward energy security with its first-ever LNG import terminal at Richards Bay.

Zululand Energy Terminal has secured a 25-year deal with Transnet, giving it the rights to build, operate, and maintain the facility.

The terminal will be developed in two phases, starting with a floating storage unit and an onshore regasification system.

A new pipeline will connect the terminal to the Lilly Pipeline, ensuring gas supply for industries in the Richards Bay Industrial Development Zone.

The second phase will see the construction of a permanent onshore storage tank, increasing gas supply for power plants and industries.

With South Africa facing declining gas reserves and coal plant shutdowns, this project is crucial for the country’s energy future.

As final investment decisions approach, all eyes are on Richards Bay—will this project transform South Africa’s energy landscape?