TNPA, WASAA CEF sign 25-year deal to build Durban’s first LPG terminal

“In keeping with this mandate and the concession framework under Section 56 of the Ports Act, today marks a milestone of great significance,” Nchocho said.

The Transnet National Ports Authority (TNPA) has signed a landmark 25-year Terminal Operator Agreement with WASAA CEF SOC Ltd to develop and operate a new liquefied petroleum gas (LPG) terminal at the Port of Durban’s Island View Precinct. Valued at approximately R1.4 billion, the project represents a major investment in South Africa’s energy and logistics infrastructure and a significant step in advancing the country’s Just Energy Transition.

The agreement was signed during a ceremony held at the Port of Durban LPG Terminal, where TNPA Board Chairperson Tshokolo Nchocho said the project aligns with TNPA’s developmental mandate to transform South Africa’s ports system and unlock economic growth opportunities.

“In keeping with this mandate and the concession framework under Section 56 of the Ports Act, today marks a milestone of great significance,” Nchocho said.

TNPA issued the award letter for the 25-year concession in July 2024 following a competitive bidding process. The concession covers the design, development, financing, construction, operation, maintenance, and eventual transfer of the LPG terminal in the Island View precinct.

Nchocho said the agreement reflects TNPA’s strategic direction to modernise port infrastructure, attract long-term investment, and support South Africa’s evolving energy and logistics landscape.

“This Terminal Operator Agreement represents a partnership aligned with national priorities, market demand, and global energy dynamics. The development of the first LPG terminal at the Port of Durban is a timely response to where the world is moving,” he said.

The WASAA CEF Joint Venture brings together a Level 1 black-owned, black-women-led company with the Central Energy Fund (CEF), a national energy institution mandated to support energy security and long-term development. Nchocho described the partnership as transformation grounded in capacity, performance, and a shared vision for strengthening South Africa’s role in the regional energy market.

Transnet Group Chief Executive Advocate Michelle Phillips said the agreement comes at a critical time as South Africa accelerates its transition from fossil fuels to cleaner energy sources.

“At Transnet, we are building a stronger, more resilient organisation capable of supporting national growth. This agreement reflects the type of partnership we envision—one that introduces new capacity, expertise, and value into the logistics system,” Phillips said.

She added that rebuilding trust, attracting investment, and fostering partnerships are central to TNPA’s long-term strategy.

eThekwini Mayor Cyril Xaba welcomed the development, saying it would significantly enhance Durban’s position as a leading energy and logistics hub while creating much-needed jobs.

“This project will support the city’s Climate Action Plan by reducing carbon emissions and aligns with our plans to procure 400 megawatts of renewable energy, including gas-to-power and solar PV,” Xaba said, noting the project’s timely alignment with the city’s energy ambitions.

The LPG terminal—known as LOT 100 Terminal—will have a storage and handling capacity of 50,000 cubic metres and the ability to dispatch up to 800 cubic metres per hour of heated LPG mix. Once operational, the facility is expected to meet growing demand in KwaZulu-Natal and the Eastern Cape hinterlands, supplying both industrial markets and residential consumers.

The terminal is scheduled for completion by 2027 and will diversify South Africa’s LPG import entry points, which are currently concentrated at Richards Bay, Saldanha Bay, and Port Elizabeth—ports that accounted for 97% of LPG imports between 2010 and 2022. The Durban terminal will also strengthen the port’s role as a major hub for the Southern African Development Community (SADC) and a key transhipment point linking global markets.

WASAA’s expansion builds on its acquisition of bp Southern Africa’s liquid bulk fuels import terminal in East London in 2022, which services major clients such as Shell, bp, and Engen and has 55 million litres of storage capacity.

Highlighting gender inclusion, Nokwande Qonde, Founder and Managing Director of WASAA, said the project marks an important step for women’s meaningful participation in the oil and gas sector.

“We must be intentional about dismantling exclusionary practices in the industry. Women’s leadership in energy should not be an exception but the norm,” Qonde said, adding that LPG plays a vital role in clean energy transitions globally, particularly in regions without access to natural gas networks.

TNPA Acting Chief Executive Mohammed Abdool said the project will enhance Durban’s strategic importance, improve access to cleaner energy, and contribute to reducing carbon emissions, reinforcing Transnet’s Reinvent for Growth strategy focused on public-private collaboration.