The Transnet National Ports Authority (TNPA) has officially opened a tender for a private terminal operator to design, finance, build and operate a small-to-medium-scale liquefied natural gas (LNG) terminal at the Port of East London under a 25-year concession.
TNPA says the project will be located on a greenfield site of about 8 900m² in the port’s West Bank precinct and is intended to serve growing natural gas demand in the Eastern Cape. The successful bidder will hand the terminal back to the TNPA at the end of the concession period.
Private investment to unlock new energy and trade opportunities
East London port manager Dr Sphiwe Mthembu said the tender is aimed at attracting private-sector investment and expanding the port's energy-linked infrastructure. The authority told industry that it received a “strong market response” during an earlier Expression of Interest phase, signalling commercial interest in developing LNG facilities at the port.
“This initiative represents a significant milestone in unlocking new investment opportunities within the port,” Mthembu said.
TNPA positioned the planned terminal to handle imports of small- to-medium-scale LNG and to serve niche consumers and industrial users across the province. Operators will also be required to provide the terminal’s operational and safety systems as part of their responsibilities.
What the concession includes
- Design, financing and construction of the LNG terminal;
- Operation and maintenance for the duration of the 25-year concession;
- Transfer of the asset to TNPA at concession end;
- Provision of operational and safety systems by the private operator.
The TNPA said the development forms part of a wider strategy to diversify port infrastructure and respond to future energy demand in the Eastern Cape. Mthembu highlighted expectations that the terminal will support strategic energy infrastructure while generating prospects for new industries and increased trade volumes through the port.
Local impact and broader context
For East London and the surrounding region, a functioning LNG import facility could offer a predictable fuel source for industrial users and municipalities seeking alternative or transitional energy supplies. The project is consistent with moves elsewhere in South Africa to broaden energy options while ports and rail corridors stabilise following recent recoveries in Transnet’s operations.
TNPA’s approach — seeking a private terminal operator on a long concession — shifts construction and operational risk to the private sector while keeping the asset ultimately in public ownership. This model has been used in other South African port projects to accelerate delivery without immediate, large-scale capital outlays by state entities.
| Item | Detail |
|---|---|
| Location | Port of East London, West Bank precinct |
| Site area | 8 900m² |
| Concession length | 25 years |
| Scope for operator | Design, finance, construct, operate, maintain, transfer |
| Target market | Small- to medium-scale LNG imports; niche consumers and industrial users in the Eastern Cape |
While TNPA has confirmed market interest from the EOI stage, it did not disclose a timeline for award of the concession or projected throughput volumes in its announcement. The level of private financing attracted and the final operating model will determine how quickly construction can begin and the degree to which local businesses can connect to the new fuel supply.
What to watch next
- The timeline for submission of bids and selection of the private terminal operator;
- Details of safety and environmental conditions attached to the concession;
- Potential offtake agreements with local industry and municipalities, which will underpin commercial viability.
The tender marks a notable step in the Eastern Cape’s evolving energy landscape and the Port of East London’s role as a facilitator of trade and industrial development. As bids come forward, the balance between investment risk, safety obligations and local benefits will shape whether the terminal becomes a catalyst for new industry or remains a marginal supplement to existing energy supplies.
Reporting from East London.
