R123-bn local oil deal signed
Signatures secured for R123-billion oil and gas tank farm and power plant south of Mtunzini.
ZULULAND will become home to Africa’s largest oil and gas terminal as foreign investors jump onboard for a $9.2-billion (R123-billion) venture.
Phangela Storage Tank Farm, proposed to be built south of Mtunzini and Fairbreeze, will boast a giant liquid bulk facility with storage capacity of two million cubic meters as well as dedicated marine facilities, reversible pipeline infrastructure, a LNG re-gasification terminal and two offshore single buoy moorings (SBM) to accommodate supertankers.
Products such as LPG, LNG, crude oil and bulk liquid petrochemicals will be imported and exported from the depot to long-term local and international clients.
Once fully operational, the terminal will employ around 16 000 permanent staff members with 260 security guards on standby per shift.
The project has received backing by renowned industry leaders including Indian oil company Fox Petroleum, Indian port terminalling and infrastructure group IMC Limited, global commodities trading group Gunvor Singapore, UK-based global marine services provider Fendercare Marine, Dutch insurance brokers Raetsheren van Orden and multi-national audit firm Ernst & Young.
‘This is the biggest development KZN has seen in decades,’ said Phangela Holdings CEO Mike van Croonenburg.
‘Reversible offshore pipelines will be connected 175 kilometres south to Durban and 40kms north to Richards Bay – it is the safest way to transport oil as there is no risk of road accidents.
‘And the dedicated Marine Park will have two SBMs and berthing dolphins ensuring no congestion, no demurrage and significant reduced environmental damage risks.’
Van Croonenburg added it will be a proudly South African project aiming to create innumerable direct and indirect work opportunities in the region.
Green power plant
Fox Petroleum on Thursday morning agreed to invest in a 1500 megawatts gas power plant, using LNG as feedstock, to power the vast operation.
At the stakeholders engagement session, held on Thursday afternoon in Richards Bay, Fox Petroleum Chairman and Managing Director Ajay Kumar Jha emphasised the plant will not only provide clean, renewable energy, but four percent of the total earnings will be re-invested in the local community.
‘We will build schools, a college, a hospital offering medical services free of charge, and give scholarships.
‘It’s not tax, it’s humanity.
‘India and South Africa has always had a good relationship and we would like to be remembered fondly by helping those we can.’
