Transnet in cost-sharing agreement with the IFC
JOHANNESBURG - Transnet yesterday entered into a cost-sharing agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to conclude a feasibility study and facilitate investment in natural gas infrastructure in KwaZulu-Natal.
The feasibility study will be for the development of a liquefied natural gas (LNG) storage and regasification terminal at the Port of Richards Bay and the re-purposing of Transnet pipelines for natural gas transmission to inland markets.
The state-owned freight and logistics company said it had identified significant industrial demand for natural gas and opportunities to leverage its ports, pipelines and rail assets to facilitate private investment in gas infrastructure for South Africa. This initiative is intended to unlock a backbone of the country's natural gas network infrastructure to serve existing and growing gas markets, consisting largely of industrial and commercial off-takers located in KwaZulu-Natal, Mpumalanga, Free State and Gauteng provinces.
The aim is to facilitate private sector investment and partnerships with other state-owned companies for the development of South Africa’s natural gas infrastructure.
The Richards Bay Natural Gas Network (NGN) project will complement the delivery of LNG to new markets in the Eastern Cape and Western Cape.
African News Agency (ANA)