Transnet has signed a long-term operator agreement for a liquefied natural gas import terminal at the Port of Ngqura, marking another major step in South Africa’s push to strengthen energy security and reduce dependence on coal-fired power generation, according to CNBC Africa. The agreement was signed through Transnet National Ports Authority with Ukwanda LNG, a joint venture involving Tamasa Energy Group and the Strategic Fuel Fund.
The deal covers the development of an onshore LNG regasification facility at the deepwater Eastern Cape port under a 25-year operator agreement. According to Transnet, the project is expected to attract investment of around 22 billion rand ($1.34 billion) and will include a dedicated LNG berth alongside gas infrastructure designed to support industry, power generation, and future energy demand.
Transnet Group Chief Executive Michelle Phillips described the agreement as a major shift in how South Africa’s ports support national energy infrastructure and economic growth. Analysts say the project aligns with South Africa’s broader energy transition strategy as the country increasingly turns to gas as a transitional fuel while expanding renewable energy capacity.
Energy observers note that South Africa is accelerating LNG infrastructure development amid declining gas imports from Mozambique, electricity shortages, and growing industrial energy demand. They add that Ngqura’s strategic location and deepwater capacity could position the port as an important regional energy hub within Africa’s evolving gas and power landscape.
