The KwaZulu-Natal gas project, which will see the transitioning of the Lilly Gas Pipeline from transporting methane-rich gas (MRG) to liquefied natural gas (LNG), has been given the thumbs up.
Transnet, the state-owned port, rail and pipeline entity, will oversee the ambitious project.
It will see the transportation of liquefied natural gas from Richards Port, the deepest natural harbour in Africa in the north coast of KwaZulu-Natal, to inland markets.
The project is also part of the strategy to develop, finance, construct and maintain LNG midstream infrastructure to enable South Africa to import LNG in the near future.
“The plan represents a clear strategy to meet the county’s current gas needs and even to significantly expand our consumption as part of the energy transition,” said Sibongiseni Khathi, the CEO of Transnet Pipelines.
“We are very excited about this project. If everything goes as planned, we could see gas flowing into the country by 2028.”
Gas shortages
The major development comes at a time when there are generally gas shortages from the Pande-Temane gas fields located in Mozambique.
The gas fields in the neighbouring country are set to reach their end of life, putting South Africa’s gas supply in a precarious position.
Early this year, the Transnet National Ports Authority appointed the Transnet Pipelines and Vopak Terminals Durban consortium to develop and operate the LNG terminal and Port of Richards Bay named the Zululand Energy Terminal (ZET).
The terminal will be a crucial hub for importing LNG, which will be integrated into the Lilly Pipeline network.
The project will support South Africa’s growing demand for natural gas and strengthen the country’s energy infrastructure, according to Transnet Pipelines’ expression of interest for repurposing the Lilly Pipeline.
“With the demand for natural gas expected to rise significantly, Transnet is proactively developing the LNG value chain to safeguard South Africa’s strategic interests,” Transnet noted.
According to the entity, the initiative also positions Transnet’s Natural Gas Networks business as a vital contributor to the country’s long-term economic growth and transformation.
Intake station in the pipeline
The Lilly Pipeline currently transports about 500-million cubic metres of MRG annually from Secunda via Empangeni to Durban, with key offtake points along the route.
The project will see the construction of an intake station near the rural town of Empangeni to connect with the ZET as the source point at the Port of Richards Bay.
Transnet Pipelines operates and maintains a 3 114-kilometre network of high-pressure petroleum and gas pipelines.
The network transports crude oil, refined petroleum products, and methane-rich gas from South Africa’s ports and inland refineries to customer distribution depots across the industrial heartland and KwaZulu-Natal.
The pipelines traverse five provinces, which are KwaZulu-Natal, Free State, Mpumalanga, Gauteng, and North West, and include a 30-million-litre tank farm in Tarlton for storage and distribution via rail and road.
