Richards Bay Transnet FSRU

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Richards Bay Transnet FSRU 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

• Operator: Vopak
• Owner: Transnet
• Parent: South Africa Department of Public Enterprises
• Location: Richards Bay, KwaZulu-Natal, South Africa
• Coordinates: -28.8, 32.1 (approximate)
• Capacity: 1 mtpa, 0.14 bcfd
• Status: Proposed
• Type: Import
• Start Year: 2026

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 will have an initial capacity of 1 mtpa and will 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.

Transnet's proposal is distinct from Karpowership's plans to deploy vessels for Richards Bay FSRU, Saldanha Bay FSRU, and Coega FSRU.