Zululand Energy Terminal (ZET) has called for expressions of interest from engineering, procurement and construction (EPC) contractors for its proposed liquefied natural gas (LNG) import terminal at the Port of Richards Bay.
This is the first stage of a contractor selection process that will progress through a request for information and then a request for proposal before main EPC contractors are appointed. The process intends to assess the technical capability and experience of potential contractors for the preparation and execution of the project, ZET said.
The latest development follows a series of recent milestones for the project.
Last week, ZET and ExxonMobil South Africa LNG signed a preliminary agreement covering a potential LNG supply arrangement for the terminal.
Earlier this month, Eskom signed a heads of agreement with ZET under which it will become the proposed terminal’s foundation customer. The agreement establishes a framework for Eskom to use the proposed open-access LNG import, storage and regasification infrastructure to support its planned 3 000 MW gas-to-power programme.
“Securing foundation customer status at the ZET provides a critical enabler for our 3 000 MW gas programme,” Eskom Group Chief Executive Dan Marokane said in the joint announcement.
Phase 1 of the project plans to include a floating storage unit and an onshore regasification system with capacity of about three million tonnes per annum of LNG. A second phase will add further regasification and storage capacity.
The terminal intends to provide LNG receiving, storage, regasification, truck loading, marine bunkering and gas transmission services. ZET said the project will be developed in phases with an initial floating storage and regasification configuration followed by onshore storage expansion.
The proposed terminal is planned for the South Dunes precinct at the Port of Richards Bay under a 25-year terminal operator agreement with Transnet National Ports Authority. ZET is a joint venture between Vopak Terminal Durban and Transnet Pipelines.
The project is also linked to Transnet Pipelines’ proposed repurposing of the Lilly gas pipeline, which could provide a transmission route from Richards Bay towards industrial users in KwaZulu-Natal. Transnet Pipelines previously sought market interest in capacity on the repurposed pipeline.
The terminal remains subject to the conclusion of customer commitments, approvals, financing and later EPC appointments.
