Petroleum Africa
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Monday, July 29, 2019
South Africa’s state-owned freight logistics firm, Transnet, has signed a cost-sharing agreement with the World Bank’s International Finance Corporation (IFC) to conclude a feasibility study for the development of a LNG storage and regasification terminal at the Port of Richards Bay, in the KwaZulu-Natal province.
“This ground-breaking initiative is intended to unlock a backbone of the country’s natural gas network infrastructure to serve existing and growing gas markets, consisting largely of industrial and commercial off-takers located in KwaZulu-Natal, Mpumalanga, Free State and Gauteng provinces,” Transnet said.
The company added that its goal was to facilitate private sector investment and partnerships with other state-owned companies for South Africa’s natural gas infrastructure.
Transnet has set a mandate to “provide freight logistics infrastructure for economic growth” since identifying the “industrial demand for natural gas and opportunities to leverage its ports, pipelines and rail assets to facilitate private investment in gas infrastructure for South Africa.”
“The IFC has committed $2 million as part of the cost-sharing agreement. This will help Transnet conclude the feasibility study, establish an SPV [Special Purpose Vehicle], and inform the market of the transparent and public process to select the private investor,” Transnet said.
Transnet will lead the project while the IFC assists with the design, finance, construction and operation plans.
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