Black woman-owned petrochemical company WASAA Gasses has announced that it has acquired the interest to build and operate South Africa’s largest liquefied petroleum gas (LPG) terminal, in a landmark investment that strengthens the company’s position as one of the leading emerging companies in the oil and gas sector in South Africa and the region.
The construction of Island View’s LPG terminal, known as the LOT 100 terminal, follows the company’s procurement of BP South Africa’s liquid bulk fuel import terminal in East London in 2022, which significantly strengthens WASAA’s position as an emerging commodity trader in the sub-Saharan region, where it has regularly supplied LPG for more than a decade. The East London terminal serves major customers including Shell, bp and Engen and has an operational storage capacity of 55 million liters.
The construction and operation of the Island View LPG terminal is expected to diversify the ports of entry for LPG imports into South Africa, which are currently limited to Richards Bay, Saldanha Bay and Port Elizabeth. Together, the three ports will account for 97% of all imports entering South Africa between 2010 and 2022.
The LOT 100 terminal is also envisaged to stimulate LPG demand, which has been suppressed by the closure of the Durban-based Enref and Sapref refineries, and meet the expected bullish demand when the Richards Bay terminal peaks at full capacity. Additionally, the gas reserves stored at the terminal will contribute significantly to South Africa’s overall LPG stock levels and reflect the company’s commitment to the country’s energy security and sustainability.
The Development Bank of South Africa (DBSA) has already committed to funding the project during its development phase and has secured the right to act as lead manager for the transaction.
“The LOT 100 project is an important milestone for WASAA and represents the culmination of the hard work that has been done behind the scenes. With this strategic project, we are in the best position to play a meaningful role in the petrochemical sector, build the infrastructure and capacity needed to advance the clean cooking agenda, and transition to fair and clean energy for commercial and industrial markets while relieving pressure on power from heating and heating applications.”
With the LOT 100 terminal, we are not only reinvigorating Durban as a major gas import terminal, but also increasing our capacity and strengthening our infrastructure network to firmly position LPG as a viable energy source in the energy mix and ensure Wasaa is positioned as a preferred gas supplier. Support from DBSA has significantly increased the scale of the project and proven it to be profitable. With DBSA in our corner, we are confident that this project will attract the necessary investment. We look forward to this exciting chapter that will take WASAA to the next level,” said Nokwanele Qonde, Founder and Managing Director of WASAA.
The terminal is equipped to store and process all standard LPG products, including 100% butane, 100% propane, and LPG blends. The terminal has five bay loading gantries with an automatic weighbridge system and has a storage capacity of approximately 30,000 tonnes. The terminal is designed to import and export LPG via vessels of various sizes, from small gas carriers to very large gas carriers (VLGCs) up to 64,000DWT. The terminal will be connected to multiple berths at the Port of Durban.
“The construction and operation of this important facility planned by WASAA will focus on policy certainty, infrastructure and market reforms to create a stable, competitive and investment-friendly energy system that ensures universal, affordable and sustainable energy access that stimulates economic growth. This landmark agreement is also inherently transformative in that it gives black women the opportunity to play a meaningful role in the energy sector and be at the forefront of a collaborative effort to ensure the nation’s energy security.
As the Department of Power, we are excited to embark on this chapter, which is an important milestone in the Government’s Just Energy Transition, which aims to transform South Africa’s energy mix. Gas plays a key role in the transition to cleaner energy, balancing supply, demand and environmental needs,” said Cyrus Jim, Special Assistant to the Minister of Power, Dr. Kgosiensho Ramogopa, adding that the agreement supports the recent G20 summit resolution that resolved heating and cooling issues. It should be done through alternative energy sources including LPG.
The LOT 100 terminal is a state-of-the-art facility capable of simultaneously offloading ships and loading road tankers, allowing for steam recovery operations without disrupting operations. An integrated piping and valve network allows flexible transfer of product from any storage tank to any designated pumping station or loading bay.
South Africa’s LPG industry is poised for rapid growth due to the establishment of new distribution hubs, rising electricity prices and increasing consumer, commercial and industrial preference for cleaner energy sources.
The LOT 100 terminal is scheduled to begin commercial operations in the final quarter of 2027.
