S. Africa Plans $3bn Durban LNG Terminal, 1.8 GW Gas Power Project

South Africa plans to develop a liquefied natural gas (LNG) import terminal and gas-fired power plant at Durban port as part of efforts to expand gas-based electricity generation and reduce reliance on coal.

The project is being developed by a consortium backed by Vitol, alongside ACWA Power, Vivo Energy and terminal operator VTTI (Vitol Tank Terminals International). It combines LNG import infrastructure with a combined-cycle gas turbine (CCGT) power plant expected to deliver between 1 GW and 1.8 GW of generation capacity.

The development has been granted Strategic Integrated Project status by the South African government, enabling an accelerated regulatory and licensing process.

Planning documents submitted to lawmakers indicate that approximately 20 hectares have been reserved within the Durban marine terminal master plan for the LNG and power facilities. The estimated project cost is about $3bn. Timelines and LNG sourcing arrangements have not yet been disclosed.

In addition to electricity generation, the project is expected to support regasified LNG distribution through the Lilly gas pipeline linking Secunda to Durban, LNG trucking to industrial and mining users and bunkering services for shipping.

South Africa is targeting up to 16 GW of new gas-fired generation capacity by 2039 as it restructures its power mix and seeks alternatives to coal, which currently supplies the majority of the country’s electricity.