In a landmark move set to reshape South Africa’s energy landscape, Transnet National Ports Authority (TNPA) has signed a decisive 25-year operator agreement for a new R1.4-billion liquefied petroleum gas (LPG) import terminal at the Port of Durban. The deal, struck with a powerful joint venture led by WASAA Gases and the state-owned Central Energy Fund (CEF), represents one of the largest single infrastructure investments in the port in recent years and a critical strategic step to head off a looming national energy crisis.
The agreement, finalised after months of negotiation, will see the development of a state-of-the-art terminal with a massive 50,000 cubic metres of storage capacity—enough to hold approximately 30,000 tonnes of LPG. Construction is slated to begin in early 2026, with commercial operations targeted for late 2027. The project is being propelled by cornerstone funding from the Development Bank of Southern Africa (DBSA), underscoring its national strategic importance.
A Strategic Pivot Amidst Domestic Decline
The terminal arrives as a vital intervention at a time of mounting pressure on South Africa’s energy security. Domestic production of LPG—a crucial fuel for heating, cooking, and industrial processes—has been in steady decline as local refineries age and output dwindles. South Africa currently imports roughly 70% of its LPG, primarily through the ports of Richards Bay and Saldanha Bay, leaving the economic heartland of Gauteng and the densely populated eastern regions vulnerable to supply chain disruptions and price volatility.
“This facility is not just an infrastructure project; it is a national imperative,” said Ms. Zamangwe Ndlovu, Acting CEO of the CEF, at the signing ceremony. “It strategically diversifies our import points, creating a robust third entry hub on the east coast. This directly mitigates risk, enhances competition, and will help stabilise supply and pricing for millions of households and businesses that depend on reliable, affordable gas.”
Economic Catalyst and Operational Overhaul
Beyond energy security, the project promises a significant economic boost for KwaZulu-Natal. During the construction phase, it is projected to create over 500 direct jobs, with a further 120 permanent operational positions once the terminal is live. The development is also a vote of confidence in the Port of Durban, which has faced well-documented operational and equipment challenges.
“This partnership is a cornerstone of our strategy to reposition Durban as a premier energy hub,” stated Advocate Phyllis Difeto, TNPA’s Managing Executive for the Port of Durban. “The investment will include dedicated berthing infrastructure and modern logistics systems, which will not only serve this terminal but also upgrade overall port efficiency for bulk liquid fuels.”
The joint venture, Durban Gas Terminal (Pty) Ltd, brings together the commercial agility and market expertise of black-owned WASAA Gases with the strategic oversight and energy sector mandate of the CEF. “This partnership models the kind of collaborative investment needed to solve our country’s infrastructure challenges,” said Mr. Sipho Maseko, Chairman of WASAA Gases. “We are blending entrepreneurial execution with national strategic direction to deliver a world-class asset that will serve the country for decades.”
The Road to 2027
With funding secured and agreements signed, the focus now shifts to the detailed engineering design, environmental authorisations, and the tender process for major construction contracts. The project will also necessitate upgrades to the surrounding road and rail networks to handle increased tanker traffic, with discussions already underway with local municipal and transport authorities.
As South Africa grapples with its energy transition, the Durban LPG terminal stands as a critical piece of pragmatic infrastructure. It addresses an immediate security-of-supply deficit while providing a cleaner-burning alternative to coal and paraffin for countless homes. By late 2027, when the first LPG shipments are unloaded at this new facility, the nation’s energy map will have been fundamentally redrawn, with Durban at the centre of a more resilient and diversified supply future.
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