Zululand Energy Terminal, a joint venture between Vopak Terminal Durban and Transnet Pipelines (TPL), has officially signed the Terminal Operator Agreement (TOA) with Transnet National Ports Authority (TNPA) to design, develop, construct, finance, operate and maintain the LNG terminal at the Port of Richards Bay, South Africa, for a period of 25 years.
This agreement marks the conclusion of detailed negotiations between TNPA, as the port authority, and Zululand Energy Terminal, as the terminal operator. The agreement grants Zululand Energy Terminal full rights to the land designated for the construction of an LNG import terminal in Richards Bay. This milestone enables Zululand Energy Terminal to proceed with binding agreements with potential customers, supported by an ongoing capacity allocation process. A final investment decision is expected in 2026, contingent on timely customer commitments.
‘Vopak’s global expertise in LNG infrastructure, combined with our strong partnership with Reatile Group and Transnet Pipelines, positions us to deliver a world-class terminal in Richards Bay. This project aligns with Vopak’s vision to expand in industrial and gas terminals, providing reliable and sustainable energy solutions for South Africa,’ says Oliver Naidu, president of Vopak South Africa.
‘This landmark agreement signifies a bold step forward for South Africa’s energy future. At Transnet Pipelines, we are committed to enabling the country’s energy transition by investing in critical midstream infrastructure. The Zululand Energy Terminal will be a cornerstone of our strategy to provide cleaner energy solutions while fostering industrial development in the
region,’ adds Sibongiseni Khathi, TPL chief executive.
The LNG terminal is a pivotal development in South Africa’s efforts to ensure energy security as the country faces a looming “gas cliff” and the gradual decommissioning of coal-fired power stations. The terminal will support flexible power generation while fostering industrial growth in KwaZulu-Natal and beyond. Industries connected to the nearby Lilly Pipeline, owned by TPL,
stand to benefit significantly.
