The Transnet National Ports Authority (TNPA) has signed a 25-year Terminal Operator Agreement with Black woman-owned petrochemicals company, Wasaa Gasses, to construct and operate the biggest liquified petroleum gas (LPG) terminal in South Africa. The construction of the LPG terminal in Island View in Durban, which will be known as LOT 100 Terminal, follows the company’s procurement of bp Southern Africa’s liquid bulk fuels import terminal in East London in 2022.
The East London terminal serves key customers, including Shell, bp, and Engen, and boasts 55 million litres of operational storage capacity.
Diversify the ports of entry
The construction and operation of the LPG terminal in Island View is expected to diversify the ports of entry for LPG imports into South Africa, which are currently limited to Richards Bay, Saldanha Bay, and Port Elizabeth.
The three ports collectively account for 97% of all imports coming into South Africa between 2010 and 2022.
LOT 100 Terminal is also set to revitalise LPG demand that has been stifled by the closure of Durban-based Enref and Sapref refineries and meet the expected bullish demand when the Richards Bay terminal peaks at its maximum throughput capacity.
Additionally, the gas stockpile that will be stored at the terminal will significantly contribute to the overall LPG inventory levels in South Africa.
The Development Bank of Southern Africa (DBSA) has already committed to funding the project during the project development phase and has secured the rights to become the lead arranger for this deal.
“The LOT 100 project marks a significant milestone for Wasaa and represents a culmination of the demanding work that went on behind the scenes.
“This strategic project places us in a prime position to play a meaningful role in the petrochemicals sector and ensure that we build the requisite infrastructure and capacity to facilitate the clean cooking agenda, alleviate the pressure on electricity through thermal heating applications, while transitioning to just and clean energy for commercial and industrial markets.”
“With the LOT 100 Terminal, we are not only revitalising Durban as a major gas import terminal, but we are also augmenting our capacity and beefing up our infrastructure network to ensure that LPG is firmly positioned as a viable energy source in the energy mix, and Wasaa as the preferred gas provider.
“The backing by the DBSA greatly enhances the stature of the project and demonstrates that it is bankable.
“With the DBSA in our corner, we are confident that the project will attract the requisite investment.
“We are looking forward to this exciting chapter that will take Wasaa to the next level,” says Nokwanele Qonde, founder and managing director of Wasaa.
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Multiple berths
The terminal is equipped to store and handle all standard LPG products, including 100% butane, 100% propane, and LPG blends.
The terminal enjoys a storage capacity of approximately 30,000 metric tonnes, with five bay loading gantries that are equipped with automatic weighbridge systems.
The terminal is designed to import and export LPG via marine vessels ranging in size from small gas carriers to very large gas carriers (VLGCs) up to 64,000DWT.
The terminal will be connected to multiple berths at the port of Durban.
“Wasaa’s planned build and operation of this important facility gives expression to the government’s vision to create a stable, competitive, and investment-friendly energy system that focuses on policy certainty, infrastructure, and market reforms to ensure universal, affordable, and sustainable energy access to stimulate economic growth.
“This landmark deal is also transformative in nature as it gives Black women an opportunity to play a meaningful role in the energy sector and to be at the forefront of concerted efforts to ensure energy security for the country.
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“As the Department of Electricity, we are excited with embarking on this chapter that marks an important milestone for government’s Just Energy Transition which aims to transform South Africa’s energy mix, with gas playing a crucial role in traversing to cleaner energy, balancing supply, demand, and environmental needs,” says Silas Zimu, special advisor to the Minister of Electricity, Dr Kgosientsho Ramokgopa, adding that the deal endorses the resolutions taken at the recent G20 summit which resolved that cooling and heating should be done through alternative sources of energy including LPG.
LOT 100 Terminal is equipped with simultaneous ship unloading and road tanker loading, while vapour recovery operations are enabled without operational interference.
The integrated piping and valve network permits flexible product transfer from any storage tank to any designated pump station or loading bay.
South Africa’s LPG industry is poised for exponential growth spurred by the establishment of new distribution hubs, rising electricity prices and growing consumer, commercial and industrial preference for cleaner sources of energy.
LOT 100 Terminal is planned to come into commercial operation in the last quarter of 2027.
