Name of the Project
Sunrise Energy liquefied petroleum gas (LPG) import terminal.

Location
Saldanha Bay, Western Cape, South Africa.

Client
Sunrise Energy is majority owned by MOGS (60%), a subsidiary of Royal Bafokeng Holdings (RBH), with the State-owned Industrial Development Corporation (31%) and Illitha Group Holdings (9%) as minority participants.

Project Description
The project’s terminal facilities include a multibuoy mooring (MBM) system, located in Big Bay, Saldanha Bay for the berthing  of LPG tankers. The MBM is connected by a 3.2 km pipeline to an on-land storage facility.

The LPG  will be discharged  from ships at the MBM and transported to the onshore terminal by a subsea and overland pipeline to the onshore terminal, where the LPG will be batched and stenched to SANS 1774 specification, before being dispatched to customers using road/rail loading, direct cylinder filling, or a pipeline to downstream customers or storage facilities. 

Phase 1 of the Sunrise Energy terminal consists of 5 500 metric tons  of storage,  and will allow for the throughput of  up to 16 500 metric tons a month  of LPG. The project is designed in a modular way to respond to growth in demand, with an ultimate storage capacity of 16 500 t (after the implementation of Phases 2 and 3), with an ultimate  throughput capacity of 49 500 metric tons a month or  594 000 metric tons a year.

The LPG terminal will be an open-access facility – it can be used by  LPG  importers, distributors or downstream users to import LPG.  This will ensure easier entry for all participants in the LPG distribution sector.

Subsequent phases will be suited for the delivery of LPG to a power generation project in Saldanha, should it be required.

Jobs to be Created
The construction portion of Phase 1 is providing about 450 jobs. Once the terminal is completed, an operational staff complement of about 60 personnel will be required.

Value
Phase 1 will cost an estimated R 1.02-billion.

Duration
On-site construction started in February 2016. Phase 1 of the terminal was fully commissioned by June 2017.

Latest Developments
One of two international traders – and their local joint venture partners – that have commercial agreements in place with South Africa-based energy infrastructure company Sunrise Energy, has discharged 2 450 t of LPG through Sunrise’s Saldanha Bay terminal, in the Western Cape.

This shipment, sourced from West Africa, is the first to be shipped from the LPG import and storage facility.

The delivery of the first of many LPG cargoes will address the shortage and solve the supply crisis of LPG in the country.

The Sunrise Energy project will facilitate supply to small, medium-sized and microenterprises, which have long been denied access to the market because of supply constraints,

Underscoring the efficiency of the Sunrise Energy terminal, which was designed to allow for the quick dispatch of product to the market, the first LPG vessel was offloaded in about five hours, after which 25 t was loaded into LPG trucks in about 20 minutes – a level of efficiency “unheard of in South Africa,” according to the company.

Sunrise believes its project will allow for the consistent and secure supply of LPG into the Western Cape, which has for years been supply constrained. 

Further, the company is planning to build rail links to the country’s interior, which will enable cost-effective supply to inland markets. Sunrise says provision for modular expansion – Phases 2 and 3 of the project – will enable the company to meet regional LPG supply demands for the next 30 years.

The Sunrise Energy terminal was designed to meet stringent international standards, with safety being the first priority. It is the first of its kind in South Africa. 

The terminal is now fully commissioned and has started dispatching LPG road tankers to the market. 

Key Contracts and Suppliers
Aveng Engineering (engineering and procurement); Wilson Bayly Holmes Ovcon (onshore terminal construction); Clough Murray & Roberts Marine (marine facilities and pipeline construction); Efficient Engineering (LPG bullet fabrication); and Mammoet (transportation of LPG bullets).

On Budget and on Time?
Sunrise encountered several unforeseen delays following the start of early construction and fabrication of the LPG bullets in February 2014. The project got back on track, with full construction starting in February 2016 and the first LPG is delivered in May 2017.

Contact Details for Project Information
Sunrise Energy general manager: commercial, Arthur Martin, tel +27 21 913 7000, fax +27 913 7007 or email arthur@sunrise-energy.co.za.