Major New Gas Terminal Planned For Port of East London

The Port of East London is set for a potential new chapter in its development, with the Transnet National Ports Authority (TNPA) seeking a private operator to develop and operate a new liquefied natural gas (LNG) terminal in KuGompo City.

TNPA has issued a Request for Proposals (RFP) for the appointment of a terminal operator to design, finance, develop, construct, operate, maintain and eventually transfer a small-to-medium-scale LNG terminal at the Port of East London under a 25-year concession agreement.

The proposed development is expected to strengthen the port's role in supporting industrial activity in the Eastern Cape while creating opportunities for private investment, local businesses and employment.

TNPA says the development is supported by demonstrated market interest and growing regional demand for natural gas. However, the authority has not publicly identified the potential customers that could use the terminal.

The proposed terminal will be developed on a greenfield site in the port's West Bank precinct.

The successful bidder will be responsible for developing the infrastructure needed to handle small-to-medium-scale LNG imports, including the associated operational and safety systems.

East London Port Manager, Dr Sphiwe Mthembu described the project as a significant step towards unlocking new investment opportunities at the port.

“This initiative represents a significant milestone in unlocking new investment opportunities within the port, further advancing its long-term growth and development objectives.

“The LNG terminal is expected to attract private sector investment, support the development of strategic energy infrastructure, and strengthen the port’s role as a catalyst for economic growth in the region.

“By creating an enabling environment for new industries and emerging trade opportunities, we are positioning the port to respond to evolving market needs while contributing to regional competitiveness and sustainable development."

Mthembu said the earmarked LNG terminal development forms part of TNPA’s strategic direction to advance port infrastructure development and support diversification for the future energy demand in the Eastern Cape.

He said the development would help position the port to respond to changing market requirements while supporting regional competitiveness and sustainable development.

The terminal is expected to provide a potential energy solution for niche LNG consumers and industrial users in the Eastern Cape.

Buffalo City Metropolitan Municipality (BCMM) Spokesperson Luzuko Buku said the local government institution has been consulted about the proposed development through regular engagements with the port and other stakeholder platforms coordinated by TNPA.

“The Port of East London maintains regular quarterly bilateral engagements with Buffalo City Metro to provide mutual updates on developments, alongside other multi-stakeholder platforms coordinated by the TNPA. The proposed LNG terminal has been officially discussed with the Metro and our understanding is that it is undergoing procurement

“The City warmly welcomes this development, as it ensures the optimal utilisation of the Port generates increased revenue for the municipality, and drives much-needed job creation,”

Buku said the development could create opportunities for local small, medium and micro enterprises (SMMEs), particularly in transport, logistics, storage, retail and related support services.

“Beyond direct operations, the terminal introduces the possibility of price moderation. This can yield significant cost advantages for a wide range of users within and outside Buffalo City.”