Bidvest Tank Terminals will develop a new LPG import and storage facility in Richards Bay for Petredec.
The South African facility will be a 22,600 tonne storage facility at Bidvest’s current site in Richard’s Bay and, once complete, it will be the region’s largest pressurised LPG import terminal. There will be four mounded tanks, each capable of storing more than 5,500 tonnes of gas, thus guaranteeing year-round availability.
The commissioning of the facility will unlock previously unattainable economics, resulting in lower supply prices to the local market.
Despite growing demand for LPG, imports of the product have been hampered by high costs as a result of South Africa’s small coastal terminals and distance from major supply hubs.
A ground breaking ceremony is planned for September, with construction expected to take 27 months to complete. It is hoped that the facility will be ready in the fourth quarter of 2019.
Petredec supplies most of South Africa’s imported LPG. CEO Giles Fern believes that further investment in large, dedicated infrastructure is the only way to increase LPG’s popularity and bring lower prices to consumers.
‘Delivering LPG to South Africa on a previously unprecedented scale brings with it financial savings to our customers that will ultimately benefit consumers with lower gas prices,’ he says.
Bidvest MD David Leisegang adds: ‘The new facility will add significantly to the more than three and a half billion litres of bulk liquid product that is currently handled through our terminals in South Africa each year.’