Richards Bay LNG Terminal Project (Zululand Energy Terminal or South Dunes Precinct LNG terminal) is South Africa’s planned first large-scale LNG import and regasification terminal. It is located at the Port of Richards Bay in KwaZulu-Natal.
It is being developed as part of the country’s broader gas-to-power strategy. The strategy aims to reduce dependence on coal and address electricity supply constraints. This is through introducing imported liquefied natural gas (LNG) as a flexible fuel for power generation.
Richards Bay LNG Terminal Project Advances Following Operator Appointment
Reported February 18, 2026 – Richards Bay LNG South Africa project has exceeded the first bid invitation phase. Port of Richards Bay is home to the first LNG import terminal in the country. The appointment of a preferred operator and signing of a long-term terminal operator agreement with Transnet National Ports Authority (TNPA) has since been a major move towards its development. The project is also a part of a broader strategy by South Africa to develop its gas infrastructure and enhance energy security.
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According to port manager Captain Dennis Mqadi, the responders included experienced gas infrastructure developers and operators from South Africa, Europe, Asia, North America and the Middle East. He stated that the project was in line with the Department of Mineral Resources and Energy’s strategic goal for developing a domestic gas market. The project also aligns with the country’s Integrated Resource Plan for electricity, which includes a 3,000 MW gas-to-power allocation for construction by 2027.
To that aim, TNPA plans to approach the market in the coming weeks with a request for proposal, ensuring that the project can be completed within the stipulated timeline of 2026. According to Mgadim, the bidding process will be transparent and fair.
KwaZulu-Natal LNG Developments Gain Strategic Momentum
The development in Richards Bay mirrors other large gas infrastructure projects being developed in KwaZulu-Natal. The suggested LNG-to-power development at the Port of Durban shows an increased attention of the private sector to gas-fired generation and import capacity. The Durban project is aimed at the integration of LNG supply and power generation infrastructure. Richards Bay Terminal is on ther other hand going to be used as an import and regasification facility. Alongside this, it will serve industrial clients and gas-to-power plants of the future.
Together, these projects represent a systematic movement towards LNG as a bridge to maintain grid stability as South Africa. This is as the country increases renewable energy power. Moreover, the complementary aspect of these developments is key. It helps highlight the port’s strategic role in South Africa’s changing energy mix.
Prospects for the LNG Terminal at Richards Bay
Richards Bay is one of many prospective sites for the construction of LNG import infrastructure in Southern Africa. Given its closeness to the current Rompco pipeline, both Sasol and Eskom have shown interest in obtaining the extra gas that may flow from a terminal in Matola. Rompco connects South African gas consumers with gas supplies from southern Mozambique.
Sasol has signed a draft term sheet for the delivery of LNG to its Mpumalanga complex beginning in 2026. Additionally, Eskom has suggested the possibility of repowering some of its decommissioned coal units in the same region with gas alternatives.
Meanwhile, a separate RFI has been launched to investigate the implementation alternatives and market interest for the establishment of an LNG import hub at the Port of Ngqura in the Eastern Cape.
This document was issued by the Central Energy Fund (CEF). CEF is in a joint development agreement with Transnet and the Coega for the construction of a prospective port near the Coega Special Economic Zone.
Transnet has previously emphasized Richards Bay’s potential. It has stated that the cost of gas delivery may be decreased by connecting it to existing port and pipeline infrastructures. These include the Lily pipeline and portions of the Durban-to-Johannesburg pipeline. However, Richards Bay is a long way from Eskom’s Ankerlig and Gourikwa open-cycle gas turbine power facilities in the Western Cape. These facilities use diesel but are technically capable of running on gas. The state-owned utility also plans to contact the market soon about probable LNG supplies for both power plants like it has done for its planned 3GW gas-fired power plant project in Richards Bay.
Project Fact Sheet: Richards Bay LNG Terminal Project
- Location: Port of Richards Bay, KwaZulu-Natal, South Africa
- Project Type: LNG import and regasification terminal
- Promoter: Transnet National Ports Authority (TNPA)
- Preferred Operator: Zululand Energy Terminal (consortium led by Vopak Terminal Durban and Transnet Pipelines)
- Estimated Investment Value: Multi-billion-rand development (final investment value subject to FID)
- Project Model: Design, Build, Finance, Operate and Transfer (DBFOT)
- Concession Period: 25 years (Terminal Operator Agreement signed)
Infrastructure Components:
- LNG import facilities
- Floating Storage and Regasification Unit (FSRU) (initial phase)
- Onshore storage and pipeline connections
- Marine berthing infrastructure
Primary Objective:
- To establish South Africa’s first LNG import terminal and support gas-to-power, industrial users, and broader energy diversification.
Current Status (2026):
- Operator appointed; Terminal Operator Agreement signed; progressing toward Final Investment Decision (FID) and construction phase.
Expected Commercial Operation:
- Targeted late-decade commissioning (subject to FID and construction timeline).
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