Transnet And Petredec Sign Up For Historic Lpg Project

British LPG value chain company Petredec and Transnet Freight Rail TFR have announced a groundbreaking rail freight solution that will transform the distribution of gas in South Africa.

The companies announced the landmark project that will feature a dedicated train system, modern LPG intermodal hub and storage facility at Sentrarand, Benoni, in Gauteng, in a joint statement on Wednesday.

The project marks a significant milestone and investment in the countrys energy infrastructure to meet the growing demand for LPG in the coming decades. The new LPG hub will serve as a staging post for South Africas economic heartland and the broader Southern African Development Community region, the companies said.

The hub will receive bulk LPG via rail from the initial loading point at the Richards Bay LPG terminal in KwaZulu-Natal with Petredec introducing the first scheduled LPG train system in the country. Each 75-wagon train set will have capacity to transport more than 2 500t of LPG.

Initially operating up to three times per week, this enhanced logistics system will further improve the efficiency, cost-effectiveness and environmental friendliness of LPG distribution in the country, the companies said.

Petredec CEO Jonathan Fancher said the strategic partnership marked a significant step in improving LPG accessibility.

This investment reflects our commitment to developing key LPG infrastructure and implementing more efficient, optimised logistical solutions, ultimately making LPG more affordable to end users, said Fancher.

Our goal is clear: to make clean cooking solutions like LPG more accessible to those who need it, thus contributing to a broader vision of improved energy security, public health, energy affordability and environmental conservation.

Transnet Group Chief Executive, Michelle Phillips, said the projects critical infrastructure would contribute to the countrys future energy security.

This landmark project marks a major advancement in the supply of LPG across the country, enabling bulk distribution of LPG on a scale never before achieved in Africa. The Sentrarand LPG hub and rail freight solution is critical infrastructure that will support South Africas long-term energy security and developmental ambitions.

The companies said in the statement that the initiative was particularly crucial in the context of sub-Saharan Africa, where, according to the International Energy Agency, one billion people still relied on solid biomass and kerosene for cooking, disproportionately negatively impacting women and girls.

Such investments in LPG infrastructure can greatly enhance the affordability and accessibility of clean cooking solutions, delivering substantial health, developmental and environmental benefits to the region, the companies said.

Project Engineering and Construction will be undertaken by Petredecs long-standing technical partner Lloyd Jones Construction, with the intended commissioning of the Sentrarand facility and operation of first trains commencing during the first half of 2028.

Petredec is a fully integrated, LPG shipping, trading, and land-based wholesale and terminal operating platform that has been in business for almost 45 years. The company built and operates one of the youngest, most fuel-efficient LPG vessel fleets, while its downstream division has focused on the development of LPG infrastructure with a series of LPG import terminals in operation, and under construction, around the Indian Ocean.

The first of these was commissioned in Mauritius in 2014, followed by the Richards Bay terminal in 2020, launched in partnership with Bidvest Tank Terminals. In 2024, Petredec commenced operations at its largest terminal built to date, the 34 000mts import facility in Krishnapatnam, India, with further developments under way in other key developing markets.

Petredec South Africa operates two subsidiary companies, Petrefuel and Petregaz, which distribute products in the liquid fuels and LPG sectors, respectively.