TNPA signs 25-year deal for LPG terminal at Durban Port

Transnet National Ports Authority (TNPA) has signed a 25-year Terminal Operator Agreement with WASAA CEF SOC to develop and operate a new liquefied petroleum gas terminal at the Port of Durban’s Island View Precinct.

With an investment value of approximately R1.4 billion, the execution of this project is crucial for advancing South Africa’s Just Energy Transition programme, which aims to shift the gas sector from fossil fuels to cleaner energies whilst supporting the decarbonisation of key sectors. This move further expands the Port of Durban’s value proposition to diversify its commodity offerings and ensure long-term sustainability. Once operational, the terminal will also reinforce the port’s status as a major hub for the SADC region and a key transhipment point connecting global markets.

The agreement supports Transnet’s Reinvent for Growth strategy, which focuses on transforming the business through strategic partnerships and leveraging collaboration between public and private sectors to meet growing market demand.

It follows a successful competitive bidding process under Section 56 of the National Ports Act No 12 of 2005, which led to TNPA appointing WASAA Gases and Central Energy Fund Joint Venture (JV) as a preferred bidder. The JV will develop, construct, operate, maintain and transfer the LPG terminal at the Port of Durban.

The agreement will result in a 50,000 m³ liquefied petroleum gas (LPG) terminal storage and handling capacity – a comprehensive solution addressing the growing demand, particularly in KwaZulu-Natal and the Eastern Cape hinterlands. The terminal, which is expected to be completed by 2027, will have capacity to dispatch up to 800 m³ per hour of heated LPG mix. This will provide essential supplies to various industrial markets and produce specific grades suitable for residential use.

TNPA Acting Chief Executive, Mohammed Abdool said, “Through this signed 25-year concession agreement, the Port of Durban will enhance its strategic position as a key national logistics hub. The terminal will not only benefit the local economy, but it will also enable access to clean energy and help reduce carbon emissions in the energy sector.”

The project will also create opportunities for local suppliers during the development and implementation phases, thus supporting transformation. Approximately 51% of Black-owned, women-led, youth-led enterprises - as well as those operated by people living with disabilities - will benefit from industrial development related to terminal design, engineering and other associated services.

“WASAA is pleased to have entered into this agreement with TNPA. This partnership will provide us with the ability to assemble the requisite infrastructure network that is necessary to unlock the potential of LPG as a cleaner and viable energy source for residential, commercial, and industry applications” WASAA CEF JV Director, Nokwanele Qonde.