South Africa’s state-owned transport infrastructure player Transnet will issue bid documents within weeks to contractors vying to build a new liquefied natural gas import terminal in Richards Bay, according to Reuters.
The decision to initiative a formal bid process comes at a time when the country has been hit by multiple power cuts as its ageing and creaking infrastructure — mainly fired by coal — fails to keep up with demand.
The government is currently in the midst of ongoing procurement programmes to secure alternative power supplies — including gas, wind and solar — from privately-owned players.
Under its Integrated Resources Plan, South Africa’s government aims to have a gas-fired power generation capacity of 3000 megawatts by 2027.
Located on the east coast, the Port Richards facility is targeted to come online by 2026 and will be operated by Transnet National Ports Authority (TNPA).
“TNPA is accelerating the implementation of this project to assist with the country’s energy needs and ensure that it provides the transition energy required towards SA’s decarbonisation,” Captain Dennis Mqadi, port manager at Richards Bay, was cited as saying.
He said TNPA intends approaching the market in the coming weeks with a request for proposal which aims to ensure the project can be “realised” by 2026.
Around 19 companies, including major gas developers and operators of gas infrastructure in America, Asia, Europe and the Middle East expressed interest in participating when the request for information was launched in early February this year, reported Reuters.