A significant 25-year terminal operator agreement has been reached to develop and operate a new liquefied petroleum gas facility at the Port of Durban’s Island View precinct, valued at R1.4 billion. The deal, concluded on 12 December between the Transnet National Ports Authority and a joint venture involving WASAA Gases, a black and woman-owned company, and the state-owned Central Energy Fund, marks an important step in expanding South Africa’s energy infrastructure, according to Engineering News.
The joint venture will construct the LOT 100 Terminal, featuring 50 000 cubic metres of storage capacity and the ability to dispatch up to 800 cubic metres per hour of heated LPG mix. Designed to accommodate all standard LPG products, including pure butane, pure propane, and various blends, the facility is expected to begin commercial operations in the final quarter of 2027.
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Financing for the project has been secured through the Development Bank of Southern Africa, which has also taken on the role of lead arranger. This backing is seen as crucial for drawing in additional investment, strengthening the venture’s prospects in a competitive sector.
The initiative builds on WASAA’s growing presence in the petrochemicals field, coming after its 2022 acquisition of bp Southern Africa’s liquid bulk fuels import terminal in East London. This latest development further solidifies the company’s strategic footprint in fuel storage and distribution.
By introducing a new entry point at Durban, South Africa’s busiest container port, the terminal will help diversify LPG import routes, which currently rely primarily on facilities in Richards Bay, Saldanha Bay, and Port Elizabeth. This diversification is particularly timely given the country’s increasing dependence on imported LPG.
As reported by Argus Media, imports rose sharply to 589 000 tonnes in 2024, driven by a near-halving of domestic production following refinery challenges. Meanwhile, overall consumption climbed to around 500 000 tonnes that year, up from 425 000 tonnes previously, reflecting rising demand amid electricity price increases and supply constraints, according to figures from LPGASA.
The new terminal therefore supports broader efforts to enhance energy security and promote cleaner cooking fuels for households, reducing reliance on less safe alternatives and contributing to a more resilient national supply chain.