Transnet National Ports Authority (TNPA) has entered into a landmark 25-year terminal operator agreement with Ukwanda LNG — a joint venture between Tamasa Energy Group and the Strategic Fuel Fund — to develop an onshore LNG regasification facility at the Port of Ngqura. The project positions the Eastern Cape as a strategic energy hub and marks a significant step forward in South Africa’s energy security agenda.
A Direct Response to South Africa’s Energy Transition
The facility has been designed to support South Africa’s Just Energy Transition programme and contribute to the country’s planned 6 000 MW Gas-to-Power pipeline. By providing lower-carbon baseload electricity to complement the growing renewable energy mix, the LNG infrastructure will underpin a 3 000 MW gas-to-power allocation — supplying cleaner, reliable energy where it is needed most.
Project Scope and Investment
The development includes a temporary Floating Storage and Regasification Unit, alongside the construction of permanent onshore infrastructure to supply gas to off-takers, industry, data centres and Independent Power Producers. The facility is expected to enable approximately 3 500 MW of electricity generation within the Coega Special Economic Zone (SEZ).
With a total investment value of approximately R22 billion, the project includes a dedicated R2 billion LNG berth to be constructed by TNPA in parallel with the onshore facility. Full operationalisation is targeted by 2035.
Economic and Employment Impact
The project is expected to create over 500 jobs during the estimated 36-month construction phase, with a further 50 permanent positions post-completion. These opportunities will drive skills development, local participation and industrial growth across the Eastern Cape.
A Strategic Public-Private Partnership
Designated as a national Strategic Integrated Project, this initiative reflects TNPA’s broader mandate under Transnet’s Reinvent for Growth strategy — leveraging public-private collaboration to modernise port infrastructure and advance national development priorities.
For more information visit Transnet National Ports Authority
