By Wendell Roelf and Ankita BoraTransnet said on Thursday its ports division had signed a 25-year terminal operator agreement with Ukwanda LNG (liquefied natural gas) to develop an onshore regasification facility at Ngqura in the Eastern Cape.Ukwanda LNG is a joint venture between Tamasa Energy Group and South Africa’s Strategic Fuel Fund, Transnet said in a statement.This is a response to SA’s commitment to renewable energy, which is set to unlock about 6000MW of gas-to-power pipeline.“The LNG facility will serve as critical fuel infrastructure that is much needed to support 3000MW gas-to-power allocation, providing lower carbon baseload electricity required to complement the country’s growing renewable energy mix,” Transnet said.“The project features the establishment of a temporary floating unit. “Included in the scope is the construction of permanent onshore infrastructure to supply gas to off-takers, industry, data centres and independent power producers to enable the production of 3,500MW of electricity within the Coega special economic zone.”The project’s investment value is about R22bn.Michelle Phillips, Transnet CEO, said: “This milestone represents a profound shift in how South Africa utilises its commercial seaports to support national energy security. “By formalising this terminal operator agreement, TNPA is not only executing its landlord mandate, but actively constructing the foundational infrastructure necessary to support industrial growth and facilitate the delivery of reliable, lower-carbon energy into the national grid.” Additional reporting by Business Day reporters