South Africa has selected the Vopak consortium as the preferred bidder to develop and operate a liquefied natural gas (LNG) terminal at the Port of Richards Bay.

The 25-year agreement, announced by the state-owned Transnet National Ports Authority (TNPA) on Wednesday, will see the Dutch company partner with Transnet Pipelines during the bidding round as South Africa pushes to raise gas consumption in Africa’s most industrialized economy.

South Africa is increasingly turning towards gas, as well as renewable energy sources such as wind and solar, as it looks to overcome its worst energy crisis on record and break its reliance on coal-fired plants that power its economy.

“TNPA is excited about the prospects this project brings, especially that this gas infrastructure will be the first of its kind in South Africa,” said Moshe Motlohi, TNPA managing executive for the Eastern region ports.

TNPA added that it expects the terminal to begin operations at Richards Bay in 2027.