South Africa's Transnet Signs LNG Terminal Deal for Ngqura Port

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by Sam Hamilton

South Africa’s Transnet National Ports Authority (TNPA) has entered into a 25-year terminal operator agreement with Ukwanda LNG for the development of an onshore LNG regasification facility at the Port of Ngqura.

With an estimated investment of ZAR 22 billion ($1.35 billion), the project is expected to strengthen Ngqura’s position as a key energy hub while supporting the country’s energy security goals and industrial development.

The initiative aligns with South Africa’s Just Energy Transition program, which is designed to support a planned 6GW gas-to-power pipeline. The LNG facility will provide essential fuel infrastructure for a 3GW gas-to-power allocation, helping deliver lower-carbon baseload electricity alongside the nation’s expanding renewable energy capacity.

Classified as a national strategic integrated project, the development will initially include a temporary floating unit before transitioning to permanent onshore infrastructure. The facility will supply natural gas to industrial customers, independent power producers, data centers, and other off-takers, supporting the generation of approximately 3.5GW of electricity within the Coega Special Economic Zone.

At the same time, TNPA will construct a dedicated LNG berth valued at ZAR 2 billion ($123 million). Both projects are expected to be fully operational by 2035.

“By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but actively constructing the foundational infrastructure necessary to support industrial growth and facilitate the delivery of reliable, lower-carbon energy into the national grid,” said Michelle Phillips, Transnet chief executive.

The project is anticipated to create more than 500 jobs during the roughly 36-month construction phase, along with 50 permanent positions once operations begin. It is also expected to encourage investment, promote skills development, and contribute to industrial expansion in the Eastern Cape.

Ukwanda LNG is a joint venture between Tamasa Energy Group and the Strategic Fuel Fund.