South Africa Clean Energy Hub


Rudolf Huber
Email: me (at) methanist (dot) com
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Location: Richards Bay (South Africa)
Type of project: LNG receiving terminal / Hub / Bunkering
Assumed initial capacity: from 3.000.000 to 6.000.000 metric tons of LNG per year
Estimated CAPEX: USD 600 MM (depending on configuration)
Estimated investment requirement for development: USD 35 MM
Estimated time from DTP to RFO: 40-48 months




South Africa Clean Energy Hub (SACEH) aims at developing and building as well as operate an LNG regasification and re-distribution terminal in the port of Richards Bay. It shall procure LNG either from the open market or through a partnership with a long-term supplier. Most of the LNG shall be used for power production directly at the extensive local industrial base in Richards Bay replacing pipeline supply from the north. Part of the regasified LNG can also be delivered to the only gas pipeline of South Africa for delivery to Gauteng, reversing its flow from South to North. A part of the LNG shall be submitted to bulk breaking into smaller cargos and transported satellite communities in Durban, Port Elizabeth, East London and Capetown.

SACEH aims at providing a barebones marine distribution network in order to allow power generation operators in and around South Africa to make the switch to LNG as a fuel for their generational needs.

After a successful startup, SACEH will also run a study to expand into other areas of business such as bunkering and vehicle fueling in order to exploit the current drive for cleaner fuels worldwide. This is, however, not in the scope of phase one of the project.

SACEH will allow its customers to make the switch from costly and dirty Diesel as well as coal to the cleaner and cheaper LNG as a primary energy and fueling source.



South Africa is called an energy one-way street as it lies isolated at the tip of a continent with little if any energy infrastructure. Most of South Africa’s energy infrastructure dates back to the Apartheid days and is utterly insufficient. Most power is produced by outdated coal plants and they can’t ensure stable power for the country anymore. The government backs LNG on a fundamental level.

SACEH wants to be the logistical and storage solutions in order to gasify the southern tip of Africa. LNG will be bought by private companies as well as ESKOM – the national power monopoly.



The promoters have spent significant time with developing this project. A suitable location has been spotted at the port of Richards Bay as well as contact made with the relevant authorities. South Africa is also a very political environment where multiple affirmative action programs co-exist. They play heavily into anything important to be done in the country. The promoters have taken this into account and created local alliances.

Several years of low-level lobbying, as well as market evaluation work, has already been conducted by the promoters. The challenges are well understood and assuming a solid commitment from a potential investor, this project could be put into existence very fast. The project could also be developed in tranches in order to limit commercial risk even further.

A business plan can be developed in a few months after which direct pilot client acquisition can start at once.


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South Africa Clean Energy Hub
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