South Africa signs 25-year operator agreement for LNG terminal

Zululand Energy Terminal, a joint venture between Vopak Terminal Durban and Transnet Pipelines (TPL), has inked a terminal operator agreement with Transnet National Ports Authority (TNPA) to design, develop, construct, finance, operate and maintain the LNG terminal at the Port of Richards Bay for a period of 25 years.

This deal signed on February 10 marks the conclusion of detailed negotiations between TNPA, as the port authority, and Zululand Energy Terminal, as the terminal operator.

In a statement, Royal Vopak said that the agreement grants Zululand Energy Terminal full rights to the land designated for the construction of an LNG import terminal in Richards Bay.

“Vopak’s global expertise in LNG infrastructure, combined with our strong partnership with Reatile Group and Transnet Pipelines, positions us to deliver a world-class terminal in Richards Bay. This project aligns with Vopak’s vision to expand in industrial and gas terminals, providing reliable and sustainable energy solutions for South Africa”, said Oliver Naidu, President of Vopak South Africa.

The first phase of the project includes the development of a floating storage unit (FSU) with a capacity of 135,000-174,000 cubic meters,