Liquefied petroleum gas (LPG) logistics company Petredec has entered into an agreement with bulk liquid storage operator Bidvest Tank Terminals to develop a new 22 600 t facility for the import and storage of LPG at Bidvest’s site, in Richards Bay.
The completed facility will be the region’s largest pressurised LPG import terminal, featuring four mounded tanks, each capable of storing more than 5 500 t of gas, guaranteeing year-round availability.
Despite growing demand in domestic and regional markets, LPG imports have historically been hampered by high costs resulting from South Africa’s small coastal terminals and distance from major supply hubs. The commissioning of this new large-scale facility – also capable of seaborne re-exports to neighbouring countries – will unlock previously unattainable economics resulting in lower supply prices to the local market.
With the sodturning planned for September and an estimated 27-month construction schedule, South African consumers can expect to be using LPG imported through the new Richards Bay terminal from the fourth quarter of 2019.
Dedicated 24-hour road tanker and railcar loading facilities will ensure supplies 365 days a year, enabling local LPG marketers to guarantee product availability to their customers throughout South Africa.
Petredec already supplies most of South Africa’s imported LPG and believes further investment in large, dedicated infrastructure is the only way to increase the fuel’s popularity and lower prices for consumers.
Petredec CEO Giles Fearn said the company’s commitment to the development of the Southern African LPG market underlined its confidence in the growth potential of this region. “Delivering LPG to South Africa on a previously unprecedented scale brings with it financial savings to our customers that will ultimately benefit consumers with lower gas prices.”
Bidvest Tank Terminals MD David Leisegang added that the new facility would add significantly to the more than 3.5-billion litres of bulk liquid product that is currently handled through local terminals every year.