Transnet National Ports Authority (TNPA) has signed a landmark agreement with Ukwanda LNG to build and operate a gas facility at the Port of Ngqura for the next 25 years.
The development has been designated a national Strategic Integrated Project aimed at strengthening the country’s energy security by advancing the gas infrastructure needed to help stabilise electricity supply.
The project is valued at approximately R22 billion.
TNPA will construct a dedicated LNG berth valued at R2 billion while development of the onshore facility takes place in parallel. Full operations are targeted for 2035 to support long-term energy security.
“The development of an onshore LNG regasification facility at the deepwater Port of Ngqura is a direct response to South Africa’s Just Energy Transition programme, which is set to unlock a planned 6 000 MW gas-to-power pipeline,” Transnet said on Thursday.
The LNG facility will serve as critical fuel infrastructure to support a 3 000 MW gas-to-power allocation, providing lower-carbon baseload electricity to complement the country’s growing renewable energy mix.
The project also includes the establishment of a temporary floating unit.
The scope also includes the construction of permanent onshore infrastructure to supply gas to off-takers, industry, data centres and independent power producers, enabling the generation of about 3 500 MW of electricity within the Coega Special Economic Zone (SEZ).
The initiative aligns with Transnet’s ongoing operational recovery and infrastructure-led growth strategy, Reinvent for Growth.
Through this public-private partnership, TNPA continues to leverage strategic collaboration and expertise to modernise port infrastructure while advancing national development priorities.
“This milestone represents a profound shift in how South Africa uses its commercial seaports to support national energy security.
“By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but also building the foundational infrastructure needed to support industrial growth and deliver reliable, lower-carbon energy to the national grid,” said Transnet Group Chief Executive Michelle Phillips.
The project is expected to create more than 500 jobs during the approximately 36-month construction period, as well as 50 permanent jobs once construction is complete.
These opportunities are expected to further drive investment, skills development and industrial growth in the Eastern Cape.
Speaking on behalf of Ukwanda LNG, Professor Anna Mokgokong, Chairperson of Tamasa Energy Group, said the signing of the agreement was more than a procedural step; it reflected long-term conviction, disciplined effort and a shared belief in the strategic value of the project for South Africa’s energy future, logistics capability and economic development.
“For the Eastern Cape, this project represents infrastructure that can unlock jobs, skills development, local participation and renewed economic momentum, while supporting energy security and South Africa’s broader transition to a more diversified, lower-carbon energy mix,” Mokgokong said. SAnews.gov.za
