LNG terminal to boost skills development
LNG terminal, to be located at the Port of Richards Bay, is expected to inject billions into the local economy
Skills and small business development are being prioritised as Richards Bay gears up to site the country’s first liquefied natural gas (LNG) terminal.
The terminal, to be located at the Port of Richards Bay, is expected to inject billions into the local economy.
The Zululand Energy Terminal (ZET) team has been visiting local institutions of higher learning to unpack plans for the development as well as highlight various skills development opportunities.
“Our entire team spent time at the University of Zululand and at Umfolozi TVET College because we are looking at the next phase: how many bursaries we are going to allocate and how many people we will put into the artisan programme,” said ZET director Oliver Naidu.
Naidu was speaking at a recent engagement hosted by the Zululand Chamber of Commerce and Industry (ZCCI) in Richards Bay.
“We are looking at the Small, Medium and Micro Enterprise (SMME) group, and Enterprise and Supplier Development (ESD), which is also a big focus.
“These are the objectives of the chamber. We are coming in, not to create something new that doesn’t exist, but to complement what the chamber is already doing.”
Earlier this year, ZET announced that millions are expected to be invested in skills development, with R17m during construction and a further R18m during operations.
“This programme is expected to benefit about 790 people, with a particular focus on youth, women, and persons with disabilities from King Cetshwayo District.
“We have a full strategy on the economic development programmes that we will run. We are looking at skills development, which is one of the most important things for us,” said Naidu.
Major investment
He told captains of industry last week that the development will be the largest integrated project in one area, investing between US$1.2 and US$1.5bn.
“We are talking in excess of R140 to R150bn in one area, at one time,” said Naidu.
He said the terminal will put Richards Bay on the map, boosting local businesses and tourism.
The terminal will be implemented in phases. The first phase is expected to include a floating storage unit, while the second phase is the introduction of an onshore LNG tank. It will operate through a proven LNG value chain.
LNG carriers will deliver cargo into the deep-water berth, the LNG will be safely stored, regasified through onshore technology and then distributed through pipeline infrastructure to customers.
A key part of this system is the planned gas transfer point within the Richards Bay Industrial Development Zone (RBIDZ). RBIDZ is the central offtake and distribution node, enabling gas supply to multiple users in the region, including industrial customers and future gas-to-power developments.
ZET will also connect into the Lilly Pipeline system through a new 24-inch connection, enabling imported gas to reach broader industrial and energy demand centres.
In June, ZET signed a Heads of Agreement with ExxonMobil South Africa, signalling international market interest in supplying LNG to South Africa.
ZET has also secured Eskom as a foundation customer for the power utility’s planned 3 000MW gas-to-power project in Richards Bay.
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