Transnet Pipelines, a division of Transnet SOC Ltd, has issued a Request for Proposals inviting interested parties to enter into a heads of agreement to secure pipeline capacity in the repurposed Lilly Pipeline. This initiative marks a significant step in facilitating the transmission of regasified liquefied natural gas into the South African market, supporting both energy transition efforts and economic growth.
Enhancing Energy Security Through Infrastructure Repurposing
The Lilly Pipeline, which currently transports methane-rich gas for heavy industries in South Africa, is being repurposed to align with Transnet’s Natural Gas Network Strategy. This strategy aims to enhance energy security by leveraging existing infrastructure for LNG transportation.
The project will establish a connection between the Lilly Pipeline and the Zululand Energy Terminal at the Port of Richards Bay, ensuring LNG supply to key industrial markets across KwaZulu-Natal, Mpumalanga, and Gauteng.
Driving Industrial Development with Reliable LNG Supply
Mumtaz Peters, acting chief executive of TPL, highlighted the significance of the initiative:
“This initiative is a key milestone in developing South Africa’s natural gas sector and ensuring the efficient transportation of cleaner energy sources. By leveraging the Lilly Pipeline’s strategic positioning, we aim to provide reliable access to LNG while fostering industrial development.”
Request for Proposals: Inviting Experienced Industry Players
The RFP process invites companies or consortia with proven experience in gas aggregation and transportation to submit proposals detailing:
Capacity requirements
Commercial terms
Financial standing
This initiative represents a major opportunity for stakeholders in the natural gas sector to contribute to South Africa’s energy transition while benefiting from an established pipeline infrastructure.
The repurposing of the Lilly Pipeline underscores Transnet’s commitment to sustainable energy solutions, ensuring greater energy security and industrial growth in the region.
For more information visit www.transnet.net
