Transnet Pipelines (TPL) has invited interested parties to submit expressions of interest (EOI) in a strategic project to repurpose the Lilly gas pipeline from transporting methane-rich gas (MRG) to re-gasified liquefied natural gas (LNG).
TPL says the project is in line with its commitment to bolster South Africas energy infrastructure and develop the LNG value chain to support growing demand for natural gas.
This initiative positions Transnets natural gas business as a vital contributor to the countrys long-term economic growth and transformation, according to TPL, the pipeline operator .
The Lilly pipeline transports approximately 500 million cubic metres of MRG annually from Secunda via Empangeni to Durban with key offtake points along the route.
The new project entails constructing an intake station near Empangeni to connect with the new Zululand Energy Terminal (ZET), as the source point for the Port of Richards Bay, and splitting the flow at Empangeni to allow bi-directional flow towards Durban and Secunda. It also includes debottlenecking and modelling the pipeline to ensure maximum future capacity to meet market demand and secure commercial agreements.
As part of the plan to meet demand for gas, in January, Transnet National Ports Authority appointed the TPL and Vopak Terminals Durban consortium to develop and operate the ZET. The terminal will be a crucial hub for importing LNG that will be integrated into the Lilly pipeline network.
The EOI process will help TPL assess market interest and demand, which will inform the pre-feasibility study and future requests for proposals. This EOI is non-binding and aims to gather preliminary market interest, said TPL.
Interested parties must submit their responses by August 30.
The EOI form can be downloaded directly from National Treasurys e-Tender Publication Portal or via the Transnet Portal .
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