South Africa opened bidding Wednesday for a 25-year concession to build and operate an LNG import terminal at the Port of East London, targeting a looming gas supply crisis.

The Transnet National Ports Authority issued the tender on 16 September 2026, inviting private operators to finance, build, operate and maintain the facility before transferring it to the ports authority when the concession expires.

The terminal will occupy a greenfield site of about 8,900 square metres in the port's West Bank precinct, next to the grain elevator and liquid bulk berth. The site has access to road and rail infrastructure, potentially allowing LNG imported through the port to reach industrial and other consumers in the Eastern Cape.

Dr Sphiwe Mthembu, East London Port Manager, described the project as a turning point for the port.

"This initiative represents a significant milestone in unlocking new investment opportunities within the port. The terminal is expected to support strategic energy infrastructure while creating opportunities for new industries and trade," Mthembu said.

A non-compulsory briefing for prospective bidders is scheduled for 29 September 2026 at 10:00am, led by Mthembu. Bids are due by 22 February 2027.

The project comes as South Africa prepares for a sharp decline in natural gas from Mozambique's Pande and Temane fields after 2028. Those fields have supplied roughly 90% of the country's natural gas for more than two decades.

The Portfolio Committee on Electricity and Energy, chaired by Ms Nonkosi Mvana, warned in a media statement on 6 June 2025 that the decline—widely called the "gas cliff"—could pose risks to energy security, industrial production and economic competitiveness. The committee issued the warning after briefing from the Central Energy Fund, SAOGA, Sasol and Business Unity South Africa.

East London joins two larger LNG developments at Richards Bay and Ngqura.

At Richards Bay, TNPA signed a 25-year agreement with Zululand Energy Terminals in February 2025 to develop what is planned as South Africa's first large-scale LNG import terminal. Zululand Energy Terminals is a joint venture between Vopak Terminal Durban and Transnet Pipelines. The project remains in the front-end engineering design phase, with a final investment decision targeted for 2028.

Oliver Naidu, a director at Zululand Energy Terminals, said ExxonMobil's involvement strengthens the case for Richards Bay.

"ExxonMobil's participation helps reinforce the importance of Richards Bay port as an entry point for LNG and supports plans to unlock a competitive and sustainable gas market," Naidu said.

At Ngqura in the Eastern Cape, TNPA signed another 25-year agreement in May with Ukwanda LNG to develop an onshore import and regasification facility. Ukwanda LNG is a joint venture between Tamasa Energy Group and the state-owned Strategic Fuel Fund. The project is valued at about $1.34 billion (R22 billion), with TNPA planning a further $122 million (R2 billion) investment in a dedicated LNG berth.

The Ngqura project has been designated a national Strategic Integrated Project and is expected to supply gas to industrial customers, data centres and independent power producers. The full terminal is targeted for operation in 2035, with capacity of about 3.6 million tonnes of LNG a year.

Unlike Richards Bay and Ngqura, TNPA is positioning East London as a small-to-medium-scale facility aimed partly at niche LNG and industrial consumers in the Eastern Cape.