South Africa’s Transnet National Ports Authority has signed a 25-year Terminal Operator Agreement with WASAA CEF SOC Ltd to develop and operate a new liquefied petroleum gas terminal at the Port of Durban’s Island View Precinct. The R1.4 billion project, dubbed the LOT 100 Terminal, represents a significant step in expanding the country’s gas and logistics infrastructure.
WASAA CEF SOC Ltd is a joint venture between WASAA and the Central Energy Fund, bringing together a transformation-focused operator and a state-owned energy institution. The partnership aligns infrastructure development with national energy security, investment attraction, and regional trade objectives.
Once completed in 2027, the LOT 100 Terminal will provide 50,000 cubic meters of LPG storage capacity with the ability to dispatch up to 800 cubic meters per hour. The facility will address growing demand in the provinces of KwaZulu-Natal and the Eastern Cape while diversifying South Africa’s LPG import points, which are currently concentrated at Richards Bay, Saldanha Bay, and Port Elizabeth.
Mohammed Abdool, Acting Chief Executive of TNPA, explained that through this 25-year concession agreement, the Port of Durban will enhance its strategic position as a key national logistics hub. He noted that the terminal will benefit the local economy, enable access to clean energy, and help reduce carbon emissions in the energy sector.
The project is expected to reinforce Durban’s role as a leading energy and logistics hub for South Africa and the wider SADC region. It will also support South Africa’s Just Energy Transition by strengthening access to cleaner-burning fuels while advancing the decarbonization of key industrial sectors.
Tshokolo Nchocho, Board Chairperson of TNPA, stated that the Terminal Operator Agreement represents a partnership aligned with national priorities, market demand, and global energy dynamics. He described the development of the first LPG terminal in the Port of Durban as a timely and necessary response to global energy trends. The agreement follows a competitive bidding process conducted under Section 56 of the National Ports Act.
Source: energycapitalpower.com