Petredec Limited entered into an agreement with Bidvest Tank Terminals for the development of a new facility for the import and storage of LPG in Richards Bay, South Africa, Your Oil and Gas News reported.
The completed facility will be the region’s largest pressurized LPG import terminal, featuring four mounded tanks, each capable of storing more than 5500 tons of gas, which will guarantee year-round availability, Engineering News informed.
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 neighboring countries, will unlock previously unattainable economics resulting in lower supply prices to the local market.
With the breaking-of-ground planned in September 2017 and an estimated 27- months construction schedule, South African consumers can expect to be using LPG imported via the new Richards Bay terminal from the fourth quarter of 2019.
Petredec’s CEO, Giles Fearn, said “Our commitment to the development of the Southern African LPG market underlines our 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.”