By Wendell Roelf
CAPE TOWN, July 25 (Reuters) - State-owned freight logisticsfirm Transnet plans to launch a tender next year for SouthAfrica's first terminal to import liquefied natural gas (LNG) atRichards Bay port, with first gas expected to land in 2024, asenior official said on Thursday.
South Africa is pushing to diversify its energy sources awayfrom coal, which supplies more than 90% of its electricity, andto expand capacity to reduce power cuts that have hit growth.
Transnet, which operates gas pipelines, railway lines andports in South Africa, will lead the project after the WorldBank's International Finance Corp pledged $2 million to helpfinalise the design, finance, construction and operation plans.
The project requires re-purposing existing pipelines totransport gas between the east coast city of Durban andcommercial hub Johannesburg.
"We are hoping second quarter or third quarter 2020 for therequest for quotations," which is part of the tender process,said Jabulani Sithole, a Transnet oil and gas business manager.
"Based on the work we have done we believe that we are ableto land the gas in South Africa by 2024," Sithole told Reuters.
He said it was vital to secure new gas supplies as Sasol, which pipes the bulk of South Africa's gas needs fromMozambique, had flagged it would face supply constraints from2023 due to maturing fields at Temane and Pande.
A Sasol spokesman confirmed the supply deficit scenario.
A pre-feasibility study would determine costs of the LNGterminal project, Sithole said, adding that Transnet would seekto attract LNG suppliers such as Shell and BP.
"The final cost of the gas will be determined in thenegotiations between the gas supplier and off-takers," saidSithole, adding that a special purpose vehicle would be formedto help fund the project through debt and equity financing.
Transnet aims to use its existing gas pipelines and railinfrastructure to lower local transport and distribution costs.
Angola and Mozambique, where U.S. energy firm AnadarkoPetroleum Corp last month approved Africa's biggest LNGproject worth $20 billion, were potential LNG suppliers, Sitholesaid.
Sithole said the regasification terminal could be on land ora Floating Storage Regasification Unit serving Richards Bay andother ports, including Coega where plans for a gas-fired powerplant were being considered.
"We are looking at all options," he said.
France's Total said in February it had found about1 billion barrels of hydrocarbon resources, including asignificant gas condensate resource, off South Africa's eastcoast.(Reporting by Wendell RoelfEditing by Edmund Blair)
