Liquefied petroleum gas (LPG) supplier Petredec has entered into a memorandum of understanding (MoU) with a leading terminal operator comprising the construction and leasing of LPG storage facilities in Richards Bay, KwaZulu-Natal, and Johannesburg, in Gauteng.
Subject to a final contract and the fulfilment of conditions precedent, the operator would build and lease storage facilities to Petredec encompassing a minimum of 20 000 t in Richards Bay and 5 000 t in Johannesburg.
The facility in Richards Bay would also included bonded storage and was expected to supply other ports in South Africa as well as seaborne exports to contiguous nations.
“Petredec currently supplies the majority of South Africa’s imported LPG and with these facilities we will be able to bring in larger ships and deliver larger cargoes, which is more efficient and, thus, should result in more competitively priced imported gas,” Petredec CE Giles Fearn said.
He added that the facilities would also enable the company to assist South Africa in avoiding the LPG shortages that had occurred in recent years during cold winters and refinery shutdowns.
“We are committed to assist Southern Africa [secure] ready access to adequate and competitively priced energy,” Fearn concluded.