Having successfully hosted a two-day inaugural KZN Energy Indaba tailored to the prospects of Richards Bay and the broader KwaZulu-Natal, Richards Bay Industrial Development Zone (RBIDZ) and the province’s Department of Economic Development, Tourism and Environmental Affairs are positioning the region as a leading energy hub and investment destination.

This comes as South Africa navigates the complex challenge that is a just energy transition and energy security. KwaZulu-Natal, particularly Richards Bay, is emerging as a premier destination for energy investments and green economy projects to ensure energy security, diversification of supply and socioeconomic upliftment across the country.

RBIDZ CEO Thabane Zulu said Richards Bay is recognised for its industrial base, gas pipeline infrastructure, deep-sea port and world-class port infrastructure, as well as its amenability to host major power generation projects, including gas-to-power. Notably, KwaZulu-Natal is one of two provinces in the country with about 6 000 MW of grid capacity available for new energy generation projects.

Zulu is confident that RBIDZ will become a prominent source of liquefied natural gas (LNG) to South Africa’s energy mix, as envisioned by the Integrated Resources Plan 2025 and as South Africa works to mitigate its depleting gas supply from Mozambique.

At the core of the LNG developments in Richards Bay is Eskom’s 3 000 MW gas-to-power project, which is proposed for development within RBIDZ – the only special economic zone in the country to have been designated for such a large-scale gas-to-power plant.

The plant will source gas through a pipeline from the Port of Richards Bay, supported by planned infrastructure improvements by the Zululand Energy Terminal and Transnet National Ports Authority (TNPA).  Additionally, RBIDZ and TNPA plan to develop Berth 207 at the port to handle imports and supply LNG through the existing 580 km Transnet Lilly pipeline that runs from Secunda through Empangeni to Durban.

The pipeline supplies operations across Gauteng, KwaZulu-Natal and Mpumalanga, including manufacturers that rely solely on Methane-rich gas (MRG). Zulu confirmed that the gas-to-power plant’s development is experiencing delays owing to an annulled environment authorisation by the Supreme Court of Appeal in September 2025 as a result of inadequate public consultation, however, he believed development will get back on track as the plant remains a nationally significant component of South Africa’s long-term energy transition strategy towards lower-carbon energy generation.

In turn, the Berth 207 expansion will also aid the incoming LNG terminal being developed by Netherlands-headquartered tank storage and terminal operator Vopak’s local subsidiary, Vopak South Africa, and Transnet Pipelines. The joint venture between the partners, Zululand Energy Terminal (ZET) has a 25-year terminal operator agreement in place with TNPA, which was signed in February 2025.  ZET aims to develop an initial 170 000 m3 Floating Storage Unit and an onshore regasification facility with an indicative capacity of 3-million tonnes a year, that forms the basis of the LNG terminal.

The LNG terminal will be used for gas receiving, storage, regasification, truck loading and marine bunkering, with ZET having been granted full rights to the land designated for the construction of an LNG import terminal. During the KZN Energy Indaba,  ZET project owner and director Oliver Naidu confirmed that the company is advancing commercial agreements with customers and the process to appoint an engineering, procurement and construction contractor, however, a final investment decision (FID) can only be made once there is more clarity on the timeline for the Eskom gas-to-power project.

He expects the company to make the FID by early 2028. Meanwhile, Zulu emphasised the need to translate visions into practical projects. He referred to RBIDZ’s R273-billion pipeline, of which R243-billion comprises energy generation projects. He stated RBIDZ’s commitment to help realise these projects and ensure tangible implementation, especially projects aimed at economic growth, job creation and addressing past energy constraints that hindered industrial expansion.

Zulu pointed out there are four board-approved and environment-authorised energy projects poised to start development in RBIDZ before the end of the financial year ending March 31, 2027, which include the 2 400 MW Phakwe Group, 750 MW Mabasa Energy, 2 000 MW Pictro Power and 800 MW Gagasi offshore wind projects.

For RBIDZ chairperson Adv Bheki Mbili, strategic partnerships and alignment between State-owned enterprises, government spheres and the private sector are crucial to realising the country’s energy ambitions. Co-host of the KZN Energy Indaba, KwaZulu-Natal Economic Development, Tourism and Environmental Affairs MEC, Musa Zondi, shared the same sentiment, saying that close collaboration between Transnet, Eskom, private partners and national, provincial and local government can help to derisk projects and accelerate implementation.

Only through robust public-private partnerships, capable municipalities and coordinated infrastructure sequencing can capital be mobilised, innovation be unlocked and approvals be processed efficiently, Zondi stated. For its part, KwaZulu-Natal is advancing both grid-connected utility solutions and appropriate distributed energy options to solve for energy poverty in the province.

These plans also prioritise inclusive and sustainable economic growth, job creation, social equality, human capital development and strategic infrastructure.

Zondi believed the province has extraordinary potential for development, owing to its established industrial corridors and logistics networks that are ready for virtualisation and bankable projects. Moreover, in expressing his support for RBIDZ’s efforts to advance energy generation in Richards Bay, KwaZulu-Natal Premier Thami Ntuli said that these efforts align with the KwaZulu-Natal Secondary Cities Programme that is running from 2026 to 2056.

The programme targets nine urban centres of KwaZulu-Natal beyond Durban for development into globally competitive, digitally connected and economically vibrant centres of innovation, including Newcastle, Richards Bay, Ladysmith, Port Shepstone, Kokstad, Pietermaritzburg, Vryheid, eShowe and Pongola.  

Ntuli said the programme and, by extension, RBIDZ addresses the structural challenge of economic concentration in KwaZulu-Natal since more than 60% of the province’s GDP is generated in Durban.

The Premier emphasised the need for more widespread skills development in the province, particularly for youth, women and other vulnerable groups, to meet the needs of the evolving labour market as South Africa transitions to clean energy generation. In another expression of support, Science, Technology and Innovation Deputy Minister Dr Nomalungelo Gina commended RBIDZ and investors for their energy security commitments, in light of global geopolitical uncertainties and the impact of conflicts on oil prices.

She mentioned that expanded port infrastructure in Richards Bay will also bode well for future hydrogen energy investments and exports, including ammonia and methanol, as well as retrofitting of vessels with hydrogen and LNG technology to enable lower-carbon maritime operations.

Gina agreed with President Cyril Ramaphosa’s previously stated sentiment that Richards Bay is a priority location for a regional and strategic energy hub, particularly to industrialise the KwaZulu-Natal economy and help stabilise national electricity supply.

Gina added that the energy transition presents valuable opportunities for community engagement and inclusion and empowerment of women. In prioritising local content and inclusive participation to transform the region, Mbili mentioned RBIDZ is not only targeting energy investment, but offers a broad range of investment opportunities in agroprocessing, information and communication technology and metals beneficiation.  

Examples of two major projects being commissioned in RBIDZ is the R2.2-billion Wilmar Processing South Africa edible oils plant and the R17-billion Nyanza Light Metals titanium manufacturing plant.

Mbili assured that investors can expect proper supportive infrastructure, flexible policy frameworks for private sector to operate in and various incentives within RBIDZ as prospects are turned into projects.