- 25 year terminal operator agreement signed to develop LNG infrastructure at the Port of Ngqura.
- Project valued at about R22 billion including a R2 billion dedicated LNG berth and onshore regasification facility.
- Facility expected to support up to 3 500 MW of gas to power capacity within the Coega Special Economic Zone.
Transnet National Ports Authority has entered into a landmark terminal operator agreement with Ukwanda LNG to develop and operate a liquefied natural gas facility at the Port of Ngqura for a period of 25 years. The agreement marks a major step in South Africa’s strategy to expand gas infrastructure as part of its long term energy security and electricity system stabilisation agenda.
The project, which has been designated a national Strategic Integrated Project, carries an estimated investment value of around R22 billion and is positioned as a key enabler of the country’s emerging gas to power economy. It forms part of broader efforts under the Just Energy Transition programme to diversify the energy mix while supporting lower carbon baseload generation capacity.
Under the agreement, TNPA will invest approximately R2 billion in the construction of a dedicated LNG berth at the deepwater Port of Ngqura Port of Ngqura, while parallel development of the onshore regasification and gas handling infrastructure proceeds. The project is expected to reach full operational status by 2035, aligning with long term national planning for energy security.
The facility is designed to serve as critical fuel supply infrastructure supporting a planned 3 000 MW gas to power allocation, with the broader integrated system enabling up to about 3 500 MW of electricity generation capacity within the Coega Special Economic Zone Coega Special Economic Zone. It will also include a temporary floating LNG unit during early phases of development, ensuring phased deployment of supply capability ahead of full onshore commissioning.
TNPA indicated that the infrastructure will supply gas to multiple offtakers including industry, independent power producers and data centre operators, reinforcing the role of ports as strategic energy and industrial enablers rather than purely logistics nodes. The project aligns with Transnet’s operational recovery and infrastructure led growth strategy, Reinvent for Growth, which prioritises public private collaboration to modernise national logistics and energy infrastructure.
Transnet Group Chief Executive Michelle Phillips said the agreement represents a structural shift in the role of South Africa’s commercial ports in supporting national energy objectives. She noted that the terminal operator model allows TNPA to execute its landlord mandate while enabling private sector expertise to drive infrastructure delivery and operational efficiency.
Construction of the project is expected to generate more than 500 jobs over an estimated 36 month build period, with a further 50 permanent operational roles once the facility is commissioned. Additional economic benefits are anticipated through skills development, localisation and downstream industrial activity in the Eastern Cape, reinforcing the region’s positioning as an emerging energy and manufacturing hub.
Speaking on behalf of Ukwanda LNG, Professor Anna Mokgokong, Chairperson of Tamasa Energy Group, said the agreement reflects long term confidence in South Africa’s energy transition trajectory and its industrial development potential. She emphasised that the project is expected to unlock employment, local participation and broader economic momentum while supporting a more diversified lower carbon energy system.
The investment underscores growing momentum in South Africa’s gas infrastructure pipeline as the country seeks to balance energy security, grid stability and decarbonisation objectives through large scale public private partnerships anchored in strategic logistics assets.
Author: Bryan Groenendaal
