[Durban, 5 February 2025] – Transnet Pipelines (TPL), a division of Transnet SOC Ltd, has issued a Request for Proposals (RFP) inviting interested parties to enter into a Heads of Agreement (HOA) to secure pipeline capacity in the repurposed Lilly Pipeline.
This initiative is a significant step in enabling the transmission of regasified Liquefied Natural Gas (LNG) into the South African market, supporting the country’s energy transition and economic growth. The pipeline currently transports methane-rich gas, which is used by heavy industries in South Africa.The repurposing of the Lilly Pipeline aligns with Transnet’s Natural Gas Network Strategy, which seeks to enhance energy security by utilising existing infrastructure for the transportation of LNG. The project will connect the pipeline to the Zululand Energy Terminal (ZET) at the Port of Richards Bay, enabling the supply of LNG to key industrial markets across KwaZulu-Natal, Mpumalanga, and Gauteng.
“This initiative is a key milestone in developing South Africa’s natural gas sector and ensuring the efficient transportation of cleaner energy sources,” said TPL Acting Chief Executive, Mumtaz Peters. “By leveraging the Lilly Pipeline’s strategic positioning, we aim to provide reliable access to LNG while fostering industrial development.”
The RFP process invites companies or consortia with proven experience in gas aggregation and transportation to submit proposals detailing their capacity requirements, commercial terms, and financial standing.
The deadline for submissions is 28 February 2025 at 17:00 SAST, and all proposals must
be submitted to TPL.Commercial@transnet.net. For further information or clarification,
interested parties may submit queries by 18 February 2025, on the same email above.
Ends
About Transnet Pipelines
Transnet Pipelines, a division of Transnet SOC Ltd, is a critical component of South Africa’s
energy infrastructure with over 55 years of experience. The company operates and
maintains a 3,114-kilometer network of high-pressure petroleum and gas pipelines. This
network transports crude oil, refined petroleum products, and methane-rich gas from South
Africa’s ports and inland refineries to customer distribution depots across the industrial
heartland and KwaZulu-Natal. The pipelines traverse five provinces: KwaZulu-Natal, Free
State, Mpumalanga, Gauteng, and North-West, and include a 30 million litre tank farm in
Tarlton for storage and distribution via rail and road.
Issued on behalf of Transnet Pipelines Acting Chief Executive, Ms Mumtaz Peters
By: Mfundo Ndwandwe, Spokesperson mfundo.ndwandwe@transnet.net
083 555 7459