June 12, 2017 [OPIS] - LPG trading company Petredec has signed an agreement with local infrastructure group Bidvest Tank Terminals to develop a new facility for the import and storage of LPG in Richards Bay, South Africa.
A 22,600-metric-tons storage facility, featuring four mounded tanks of 5,500 metric tons gas capacity, will be the region’s largest pressurized LPG import terminal when completed. The facility will also feature dedicated 24-hour road tanker and rail car loading facilities year-round to supply local LPG marketers.
Bidvest stated that despite growing demand in domestic and regional markets, LPG imports have historically been hampered by high costs due to South Africa’s small coastal terminals and distance from major supply hubs. The country relies largely on ship-to-ship transfers from larger vessels used as floating storage, data from IHS Markit shipping indicate.
The group added that the facility will be capable of seaborne re-exports to neighboring countries, unlocking previously unattainable economics resulting in lower supply prices to the local market.
Petredec already supplies most of South Africa’s imported LPG, Bidvest said.
Construction is expected to start in September and estimated to follow a 27-month schedule. Bidvest said South African consumers can expect to be using LPG via the new Richards Bay terminal from fourth-quarter 2019.
