(Ecofin Agency) - In South Africa, Sunrise Energy is currently constructing a liquid petroleum gas (LPG) terminal and import infrastructure in Saldanha Bay, in the Western Cape, to ease the shortfall of LPG and meet possible future needs for gas-fired power plants as well as other industrial energy requirements.

The project, which is worth R1.2-billion, is designed to import LPG from tanker ships berthed at a multibuoy mooring facility and is being developed in partnership with Mining, Oil & Gas Services (Mogs), the Industrial Development Corporation and Illitha Group Holdings.After landing the ship, the LPG will be transported via a 3 km of undersea pipelines, followed by close to 2km of overland pipelines, before going into the land-based terminal, where it will be stored in LPG pressure vessels, known as bullets.

Sunrise Energy’s plan for Phase 1 of the terminal, (once an LPG retailer has been secured to operate the terminal and sell LPG), is to satisfy the residential markets in need of LPG for heating and cooking.According to Sunrise Energy CEO, Pieter Coetzee, LPG is a perfect source of energy for these purposes as it is cost effective when compared with electricity. The facility will convert the energy mix in the Western Cape, thereby granting inexpensive substitutes for domestic thermal applications and easing the reliance on electricity.

The LPG terminal is intended as a three-phase project, offering the opportunity of an expansion when increases. Expected to be fully commissioned by May 2017, the Phase 1 of the terminal will consist of five LPG bullets, with a total capacity to store 5 500 tons of LPG while the total capacity of Phase 1 is 17, 500 tons a month.“This will necessitate about three turnovers (a month) of stock,” Coetzee said adding that the construction part of Phase 1 will provide about 450 jobs.

Upon completion, an operational staff of around 60 personnel will be needed. The Phase 2 and 3 of the project will be embarked on once commitment from the industry has been acquired. These phases will each contain additional five LPG bullets, increasing the storage capacity of the terminal to 16 500 tons, with a combined output capacity of 52 000 tons a month, Engineering news reports.

Anita Fatunji