In a landmark moment for South Africa’s energy and logistics landscape, the Minister of Transport, Ms Barbara Creecy, presided over the signing of the Terminal Operator Agreement (TOA) between the Transnet National Ports Authority (TNPA) and the Ukwanda LNG Group at the Port of Ngqura, in Gqeberha.
The agreement signals a decisive leap forward in the nation’s pursuit of energy security, economic resilience, and a just energy transition.
“Today marks a decisive step in South Africa’s journey towards energy security, infrastructure development, economic growth, and a sustainable energy future,” Minister Creecy said in her keynote address.
The Minister highlighted that the agreement follows her issuance of a Section 79 directive, which authorised the Strategic Fuel Fund (SFF) to build and operate an onshore Liquefied Natural Gas (LNG) regasification facility within the Port of Ngqura. The project will introduce LNG to the South African market as a practical, lower-carbon alternative energy source, bridging the gap between coal dependency and a fully renewable future.
“As our country continues to face growing energy demands and the urgent need for reliable power generation, LNG presents a practical and necessary transition energy that can support economic activity while reducing our carbon intensity,” she added.
The Port of Ngqura, already recognised as a world-class deep-water port, is now set to become a strategic hub for gas-to-power project pipelines and integrated infrastructure development.
“Our ports are not merely gateways for trade,” the Minister stated. “They are strategic assets that must facilitate industrialisation, regional integration, and economic resilience.”
The new infrastructure will unlock both marine and landside development, catalysing investment, creating jobs, and stimulating industrial growth across the Eastern Cape and beyond.
The Minister also noted complementary developments such as the Ngqura Manganese Export Corridor PSP, which will integrate rail and port operations to boost bulk export efficiency. While not directly linked to the LNG terminal, the broader port infrastructure upgrades will enhance overall capacity and competitiveness, including the planned shift of manganese exports from Gqeberha to Ngqura by 2032.
The LNG terminal project has been formally recognised as one of South Africa’s 12 priority infrastructure projects, announced in March 2024, and has been granted Strategic Integrated Project (SIP) status by Infrastructure South Africa.
“This is not merely symbolic,” Minister Creecy emphasised. “It affirms the urgency and importance of accelerating implementation and ensuring coordination across all spheres of government and industry.”
Concluding her address, the Minister commended the TNPA, Ukwanda LNG Group, and all stakeholders for their speed and collaboration in reaching this milestone.
“This project represents more than infrastructure,” she said. “It represents confidence in South Africa’s future. It demonstrates what can be achieved when government entities, state-owned companies, and the private sector work together with a shared purpose.”
As the ceremony drew to a close, Minister Creecy left the assembled partners with a clear call to action:
“Let us remain focused on delivery, collaboration, and accountability. The success of this project will not only be measured by infrastructure built, but by the opportunities created, the energy secured, and the contribution made towards a more sustainable and inclusive economy.”
