Zululand Energy Terminal, a joint venture between Vopak Terminal Durban and Transnet Pipelines, has officially signed a Terminal Operator Agreement with Transnet National Ports Authority for the design, development, construction, financing, operation, and maintenance of an LNG terminal at the Port of Richards Bay. The agreement grants Zululand Energy Terminal the rights to operate the terminal for a 25-year period.
This milestone marks the successful conclusion of negotiations between TNPA, as the port authority, and Zululand Energy Terminal, as the terminal operator. With the TOA in place, Zululand Energy Terminal can now advance in securing binding agreements with potential customers, supported by an ongoing capacity allocation process. A final investment decision is anticipated in 2026, subject to customer commitments.
Vopak South Africa president Oliver Naidu emphasised the significance of the partnership, highlighting Vopak’s global expertise in LNG infrastructure and its collaboration with Reatile Group and Transnet Pipelines. Naidu reaffirmed the commitment to delivering a world-class terminal that aligns with Vopak’s strategy of expanding in industrial and gas terminals to provide sustainable energy solutions for South Africa.
Sibongiseni Khathi, chief executive of Transnet Pipelines, described the agreement as a major step in supporting South Africa’s energy transition. He noted that the Zululand Energy Terminal will serve as a crucial component in providing cleaner energy alternatives while fostering industrial development in the region.
The LNG terminal is expected to play a vital role in strengthening South Africa’s energy security, particularly as the country navigates the challenges of a looming “gas cliff” and the gradual decommissioning of coal-fired power stations. The terminal will support flexible power generation while driving industrial growth in KwaZulu-Natal and beyond. Industries connected to the nearby Lilly Pipeline, owned by TPL, are expected to benefit significantly from the project.
The signing ceremony took place on 10 February 2025, following the RFP award secured in January 2024.
For more information visit www.vopak.com
