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This was revealed in a statement posted on the South African government news agency website following South African President Cyril Ramaphosa’s recent meeting with US President Trump.
According to the statement, South Africa plans to import 75 – 100 petajoules (PJ) per annum of LNG from the US for 10 years.
This will unlock “approximately $900 million to $1.2 billion in trade per annum and $$9 billion – $12 billion for ten years based on applicable price.#
The statement said that this would be complemented with US investment in gas infrastructure in South Africa.
In addition, South Africa will work with the US to explore areas of cooperation in “key technologies, including fracking technology to unlock production of gas in South Africa.”
“South Africa and the US will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price,” the statement said.
“This will not replace our current suppliers of gas but complement those supplies,” the statement added.
The US is the world’s largest LNG exporter, and its liquefaction capacity continues to expand.
The terminals include Cheniere’s Sabine Pass and Corpus Christi terminals, Venture Global’s Calcasieu Pass and Plaquemines LNG facility (still in commissioning), Sempra Infrastructure’s Cameron LNG terminal, the Freeport LNG facility, the Cove Point LNG facility, and the Elba Island terminal.
South Africa LNG import
On the other hand, South Africa’s Transnet National Ports Authority recently signed a 25-year terminal operator agreement with a joint venture consisting of Dutch terminal operator Vopak and its consortium partner Transnet Pipelines for South Africa’s first LNG import terminal.
In January 2024, TNPA appointed the two firms to build and operate the import facility at the Port of Richards Bay.
Specifically, the consortium was appointed to design, develop, construct, finance, operate, and maintain the LNG terminal in the South Dunes precinct for a period of 25 years.
Both TNPA, which is developing an LNG import terminal in the Port of Ngqura, and Transnet Pipeline are part of the South African rail, port, and pipeline company Transnet.
The partners are developing the project via its 70 percent-owned joint venture Vopak Terminal Durban.
Vopak and Transnet Pipelines plan to develop the project in two phases.
According to Vopak, the first phase includes a floating storage unit (FSU) of of 135,000-174,000 cbm capacity and an onshore regasification system with an indicative capacity of 2 mtpa, or about 400 mmscfd, and optional truck loading facilities.
Vopak and Transnet Pipelines target the commercial operations date (COD) for this phase in 2028.
The second phase includes an onshore LNG tank with a capacity of up to 220,000 cbm.
The onshore tank will potentially replace the FSU and provide additional regas capacity to increase the total capacity up to 5 mtpa, or about 600 mmscfd.
This phase could reach COD as early as Q4 2029.
