South Africa’s first LNG terminal aims to bridge power gap, but challenges remain

South Africa’s first liquefied natural gas (LNG) terminal could provide relief from the country’s ongoing power shortages, as energy planners seek to stabilise the grid and reduce reliance on coal-fired electricity.

Set to be built in Richards Bay, KwaZulu-Natal, which has the deepest natural harbour in Africa, the terminal will serve as an import hub for LNG, supplying both industrial users and gas-to-power projects. Targeting a startup date of 2028, Transnet National Ports Authority said that the terminal would have an initial yearly throughput of at least two million tonnes, with the potential to raise this to above five million tonnes.

By integrating natural gas into the energy mix, the facility aims to support more stable electricity generation, potentially easing the strain on a grid plagued by frequent blackouts.