Richards Bay Transnet FSRU

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Richards Bay Transnet FSRU, also known as Zululand Energy Terminal, is a proposed LNG import terminal in KwaZulu-Natal, South Africa.

Location

The terminal is proposed for Richards Bay, KwaZulu-Natal.

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Project Details

Phase 1

• Operator: Vopak
• Owner: Vopak Terminal Durban
• Parent: Vopak (70%), Transnet (30%)
• Location: Richards Bay, KwaZulu-Natal, South Africa
• Coordinates: -28.8, 32.1 (approximate)
• Capacity: 0.4 bcf/d
• Status: Proposed
• Type: Import
• Cost: US$372 million (full project)
• Start Year: 2028
  • Formerly 2027, 2026

Phase 2

• Operator: Vopak
• Owner: Vopak Terminal Durban

• Parent: Vopak (70%), Transnet (30%)
• Location: Richards Bay, KwaZulu-Natal, South Africa
• Coordinates: -28.8, 32.1 (approximate)
• Capacity: 0.2 bcf/d
• Status: Proposed
• Type: Import
• Cost: US$372 million (full project)
• Start Year: 2030

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In October 2016 the South Africa DoE, together with Transnet National Ports Authority, said it had completed its 18-month study on the suitability of locating an LNG import terminal at each of the Ports of Ngqura (Coega), Richards Bay and Saldanha Bay in South Africa. The studies showed that the Saldanha Bay requires substantial work on the port and the infrastructure for a gas plant. Due to this, the DoE said the first phase of the LNG-to-power program will aim to identify, select and enable Bidders to develop, finance, construct and operate one gas-fired power generation plant at each of two ports, Coega and Richards Bay. The selected bidders for the two projects will also be responsible for LNG supply, provision of the floating storage and regasification facilities (FSRU), supporting port facilities and gas transmission pipelines.

The terminal planned to have an initial capacity of 1 mtpa and to begin operations in 2020.

Transnet, which operates gas pipelines, railway lines and ports in South Africa, will lead the project after the World Bank’s International Finance Corp pledged $2 million to help finalise the design, finance, construction and operation plans. The project requires re-purposing existing pipelines to transport gas between the east coast city of Durban and commercial hub Johannesburg. The regasification terminal could be on land or a Floating Storage Regasification Unit serving Richards Bay and other ports, including Coega where plans for a gas-fired power plant were being considered.

In April 2022, Transnet said it would issue a tender for the development and operation of the project.

In February 2023, Transnet announced that it had selected Vopak to operate the terminal.

In January 2024, South Africa’s Transnet National Ports Authority appointed the firms to build and operate the terminal. In March 2024, Vopak and Transnet were testing market interest in regasification capacity at their proposed terminal. LNG Prime also reports that new details have been released for the facility, including that it will have two phases.

In October 2024, Vopak and Transnet selected UK-based engineer Wood to perform the pre-FEED phase of the project. Standard Bank was chosen as the financial advisor. It was also revealed that the project would involve repurposing the existing methane-rich gas pipeline, the Lilly Pipeline, to transport LNG to Secunda for gas off-takers.

In February 2025, Transnet National Ports Authority signed a 25 year terminal operator agreement with the joint venture between Vopak and Transnet Pipelines known as Zululand Energy Terminal - also a name for the project itself. The FID was set for 2026. Phase 1 of the project plans to include the "Development of a Floating Storage Unit (FSU) with a capacity of 135,000-174,000 cubic meters, onshore regasification infrastructure capable of ~400 mmscfd, and optional truck loading facilities. A new pipeline connection will link the terminal to the Lilly Pipeline via Empangeni, with a tie-in point for Richards Bay Industrial Development Zone customers." Phase 2 plans to include the "Construction of an onshore storage tank with a capacity of up to 220,000 cubic meters, replacing the FSU. This phase will increase send-out capacity to ~600 mmscfd, accommodating planned Gas-to-Power projects in Richards Bay and future gas users nationwide."

Transnet's proposal is distinct from Karpowership's plans (cancelled as of 2024) to deploy vessels for Richards Bay FSRU, Saldanha Bay FSRU, and Coega FSRU.