Without any doubt. Far from being in competition with energy sources such as solar and wind, the NIFPP has the ability to maximise the use of renewable energy. While the Government’s Integrated Resource Plan calls for greater use of renewables, renewables and other clean energy technologies cannot in insolation sustain security of supply. A combination of dispatchable technologies that support carbon reduction commitments (such as combined-cycle gas turbines), is required.  

Gas turbines, especially at the scale being proposed for the NIFPP, are versatile in that they can be used as baseload, mid-merit, peaking or emergency power stations; or a combination thereof. Where renewable power is available, it can be utilised by Eskom to the maximum extent, knowing that any reduction in supply, even if unexpectedly and momentarily, can be compensated for from a ramp-rate (also referred to as load-following) power station such as the NIFPP.  

Base-load power plants operate at maximum output and shut down or reduce power only to perform maintenance or repair or due to grid constraints. South Africa’s coal-fired power stations are typically base-load plants. Peaking power plants run only when there is a high demand, known as peak demand, for electricity and have the flexibility to be started up and shut down quickly.  Eskom has simple-cycle turbines fuelled on diesel for peak demand. Historically, peaking power tended to be the most expensive electricity. Mid-merit power plants operate between base load and peak load. Eskom’s pumped storage schemes are mid-merit stations.  

A power transmission network is referred to as a "grid". Multiple redundant lines between points on the network are provided so that power can be routed from any power plant to any load centre, through a variety of routes, based on the economics of the transmission path and the cost of power. A transmission substation connects two or more transmission lines. The simplest case is where all transmission lines have the same voltage. In such cases, the substation contains high-voltage switches that allow lines to be connected or isolated for fault clearance or maintenance. Transformers are used to either step up the voltage for transmission (where the power is generated) or step down the voltage for distribution into a municipal supply or to individual users (where the power is used).

 

A black start is the process of restoring an electric grid without relying on an external electric power transmission network to recover from a total or partial blackout. In the absence of grid power, a black start is needed to provide the initial power needed for the progressive start-up of the different generation sources. South Africa has particular challenges in dealing with such a network trip.

 

A gas-turbine facility is an ideal candidate to provide a black-start service as the facility has the ability to self-start – and then to supply local customer demand – without any power requirements from the grid. The fact that there is a significant storage of fuel on the Nseleni site, independently available and outside the influence of the grid, means that the facility qualifies as a true black-start facility.  

Yes, the NIFPP can play a vital role in repurposing Eskom's aging coal-fired power stations which are scheduled for decommissioning from 2030 onwards, thereby reducing the country’s carbon footprint even further.  

Gas turbines, especially at the scale being proposed for the NIFPP, are versatile in that they can be used as baseload, mid-merit, peaking or emergency power stations; or a combination thereof. Where renewable power is available, Eskom can use this to the maximum extent, knowing that any reduction in supply, even if unexpectedly and momentarily, can be compensated for from a ramp-rate (also referred to as load-following) power station such as the NIFPP.  

Anchor Energy LNG envisions the construction of an LNG pipeline from Richards Bay to Secunda, from where the pipeline can be connected to the power stations which are due to be closed by 2030. Gas power generation equipment can then be connected at each of these sites.  

Nseleni Power Corporation and Anchor Energy LNG have partnered with global leaders in energy technology to deliver engineering, procurement and construction services, as well as Original Equipment Manufacturer (OEM) products and services. These services have been purpose-designed for this project, ensuring world-class technical expertise and reliability throughout the project.  

The NIFPP will be developed under a build-own-operate-transfer (BOOT) model. In terms of this structure, Anchor Energy LNG (Pty) Ltd – through Nseleni Power Corporation – will take full responsibility for financing, designing, constructing, owning and operating the power plant for a specified concession period, after which the intention is to transfer ownership to Eskom.  

LNG transport is governed by strict safety regulations to prevent leaks and ensure safe handling during loading, transport and unloading. Multiple safety features will be installed to ensure the safe transfer, regasification, storage and combustion of the LNG. All the facilities would be designed to international standards and be protected from fire using CO₂ as an extinguishing medium together with automatic cut-off valves should a transfer line fail. Multiple sensors will provide early indications of fire risk.

 

None. The LNG will be pumped from the Fuel Storage Units to the power barge. It will be stored in interim cryogenic tanks prior to regasification and injected directly into the gas turbines. No overland gas pipelines are involved.  

South Africa's natural gas sector, which is heavily reliant on dwindling imports from Mozambique's Pande and Temane gas fields, faces a critical juncture. Sasol's impending cessation of gas supply by mid-2027 threatens to strand the country's industrial and reticulated base, emphasising the urgency of addressing this looming "gas cliff". Natural gas demand significantly surpasses supply, with substantial increases projected across industrial, gas-to-power and logistics sectors.  

Typically, LNG consists of between 85-95% methane, along with a few percent ethane, even less propane and butane, and trace amounts of nitrogen. The exact composition of natural gas varies according to its source and processing history. Like methane, natural gas is odourless, colourless, noncorrosive and nontoxic.  

Cryogenic piping is used to transport substances that have an extremely low temperature. The pipes must be able to withstand extreme changes in the liquids or gasses as they shift forms or thermal states. Cryogenic pipes are unique because they must be created with much higher quality materials, valves, and insulation than everyday pipes.  Materials transported with cryogenic piping include helium, nitrogen, ammonia, fluorine, methane, LNG and other similar goods. The temperatures of these substances can get as low as -253° C.  

Natural gas is cleaner burning than the other hydrocarbon-based fuel types, with accordingly lesser air emissions and no solid waste products from the combustion process. Natural gas also results in the lowest greenhouse gas emissions of the three possible fuel types normally associated with power generation: coal, diesel and heavy fuel oil. Open-cycle gas turbines furthermore have comparable thermal efficiency to coal-fired plants with 50% lower emissions. In combined cycle with heat recovery steam generators, they can deliver an additional 50% more energy. Their fuel logistics are fairly simple when transported either as gas or liquid through pipelines. Most importantly: they can rapidly respond to peaking and emergency power demand.

Techniques have been developed to cool natural gas to minus 162°C atmospheric pressure. At these low temperatures, natural gas occupies about 1/600th of its original volume, making it much easier to transport.  

The Liquefied Natural Gas (LNG) will be transported in purpose-built cryogenic (very low temperature) containers that retain the natural gas in liquid form. For the gas to be useable as a fuel, it must be heated (regasified) to return it to a gaseous form. This method of transport allows countries to trade natural gas over long distances, making it a crucial part of the global energy market.

 

A distinctive feature which separates an LNG ship from other bulk cargo carriers, is the heavy-insulated, temperature-controlled tanks ensuring the gas is kept in a liquid state.  

The LNG would be delivered by the ocean-going tankers and transferred from the supply vessels into the permanently moored Floating Storage Units connected to the LNG terminal.  

The LNG is transferred from the supply vessels into the permanently moored FSUs connected to an LNG import terminal. LNG would then be regasified (converted from a liquid to a gas) at each power barge prior to it being combusted.

The primary infrastructure is to be integrated with an overwater/overland elevated gantry structure and catenary bridge to facilitate the evacuation of electricity as well as LNG to onshore substations and bulk storage facilities, thereby maintaining the smallest possible physical and environmental footprint. This would facilitate the further distribution of natural gas to other areas via the existing Transnet pipeline, thus alleviating the impending gas-supply crisis in the country.

Power would be evacuated from the floating power barges to a newly constructed, land-based substation and switching yard, designed in conjunction with Eskom Technical Services and integrated into the National Grid Control Centre.

Indeed. LNG storage and regasification facilities can be constructed at Secunda to supply regasified LNG into the Sasol distribution network.

The LNG terminal is capable of addressing South Africa’s total energy demand following the phasing out of the ROMCO Mozambique gas supply, if so desired by the SA Government.

The NIFPP proposal is one of two key components of a larger energy, LNG-specific infrastructural project. The second component is for the construction of an extensive dual-marine LNG import terminal equipped with floating storage units that would integrate with the NIFPP.

Anchor Energy LNG will build, own and operate the 10 million tonnes per annum import terminal. Eskom Holdings (SOC) Ltd is, however, positioned to acquire a majority ownership share in the Nseleni Power Corporation through the acquisition of a 6 500 MW on-demand, gas-fired generation facility.

Limited dredging is required to create sufficient draft for the LNG supply vessels. Additionally, an overhead cable-stay bridge structure will link the marine structures with the onshore sub-station and transmission infrastructure.

Initially, approximately 300 000 tonnes per month of LNG would be required to support the operation of the power-generating facility, which could increase to 500 000 tonnes per month at full capacity.

The storage facilities are both offshore and onshore. The LNG is initially stored offshore in the two fully refurbished, designed-for-purpose, LNG fuel-storage units (FSUs). From here some of it is regasified and used to power the open-cycle gas turbines.  In addition, LNG is transported via the overwater/overland elevated gantry structure and catenary bridge to the bulk onshore storage tanks, which have a combined storage capacity of 200 000 tonnes LNG. Some of it is then regasified and transported to the Lilly pipeline.

For the sandspit, the estuarine specialists initially concluded that noise from the NIFPP would disturb birds utilising the sandspit to the point where the birds could potentially abandon the sandspit. Several methods for noise dampening on the power barges were subsequently investigated. UK-based estuarine bird specialists were commissioned to define a noise damage threshold. These specialists moderated the noise impact indicating that the movement of construction workers and operational personnel would be far more disturbing to birds in triggering flight responses.

Prescribed mitigation was to visually barricade people and their movement so that they would not be seen by the birds on the sandspit. A full year of bird monitoring was also conducted to characterise the bird species using the sandspit and their behaviour, which allowed flight paths to be defined. The flight paths showed that a larger gap was needed between the Floating Storage Units (FSUs) and the Power Island to avoid invading the flight path airspace and potentially threatening their access to the sandspit. The FSUs have been moved southwards by some 200 m to create a larger gap.

Anchor Energy LNG has committed to protecting the sandspit and its ecological function throughout the construction and operation of the NIFPP and to using adaptive environmental management based on scientific monitoring and analysis. Anchor Energy LNG also undertook to establish an independent environmental monitoring committee of stakeholders and technical experts to oversee the efficacy of the adaptive environmental management function.

Another key mitigation measure for NIFPP is maintaining a heat balance. The waste heat from the turbines will consequently be used to provide the energy needed for regasification, thereby avoiding thermal shock to the estuary. Noise attenuation across the project and the use of Gas Insulated Lines (GIL) instead of overhead transmission lines to reduce bird strike risk are other mitigation measures.

It is entirely possible. The Environmental Management Programme (EMPr) that has been developed for the NIFPP, has been structured to meet that ideal. Full implementation of the EMPr is essential to ensure that the project is implemented in a manner that leads to protection – and indeed enhanced protection – of the sensitive environmental elements in the estuary.

Almost no water will be consumed. Anchor Energy LNG and its partners have developed ultra-high efficiency dry coolers for the steam-condensing circuit which utilise zero water for cooling without materially affecting plant thermal efficiency. Anchor Energy LNG has furthermore developed a system to treat the blowdown water and recycle it (as opposed to discharging), which further reduces water consumption, thus approaching zero water usage.

Yes, the desalination plant can be expanded to accommodate municipal demand, if required.

Yes. Development of hydrogen technology into the de-salination plant is undergoing testing.

Natural gas is the cleanest fossil fuel and a highly efficient form of energy. It consists almost entirely of methane (CH4), the simplest hydrocarbon compound, and differs from synthetic gas, which tends to be hydrogen rich. When methane is burned completely, the principal products of combustion are carbon dioxide and water vapour.

The innovative engineering design addressed any environmental impact, which was then assessed by environmental specialists. Environmental approval has been granted by the Department of Forestry, Fisheries and Environment following an exhaustive, five-year long environmental impact assessment and public participation process.

By leveraging innovative construction methods and cutting-edge technology, the project will significantly enhance efficiency and reduce operational costs. Subject to market conditions and legislative support, these savings are expected to translate into more competitive electricity tariffs, benefiting consumers and industries alike. In addition, a larger-scale adoption of the technology would result in an even greater reduction in the base-rate cost of power.

The US$ 6 billion project will be financed through a combination of debt and equity raised from both international and domestic capital markets, with no capital requirement from the South African taxpayer or any of the state-owned entities.

The capital investment in the NIFPP will be recouped from the revenue generated by the asset over an agreed period of time.

The whole infrastructure will either be locally built or locally assembled.

Anchor Energy LNG plans to introduce dedicated skills-development programmes for the benefit of the uMhlathuze community. The projected spend in local manufacturing and labour is estimated at US$1 billion (R17-billion).

The project will create 186 operational jobs as well as thousands of jobs during the construction phase. The exact number of construction jobs will only be known once the contracts with the suppliers have been awarded. In addition to these jobs, the project will also save thousands of jobs.

The manufacturing sector relies heavily on natural gas for its processes (the industry contributes between R300 billion and R500 billion to the South African economy per annum). The industrial gas base also directly employs around 70 000 people. The complete halt in gas supply could significantly impact the industrial industries, job security and the economy across KwaZulu-Natal, Gauteng, and Mpumalanga. Anchor Energy LNG’s gas supply will prevent these jobs losses.

We firmly believe that the project represents the greatest opportunity to stimulate economic growth and job creation since the democratic dispensation. Security of sustainable energy supply will act as a catalyst for other companies to embark on capital investment and growth policies.

Tugboats accompany the LNG vessel after the pilot has embarked and control the vessel during the turning manoeuvres. When the manoeuvre is complete, the tugboats help align the vessel for a parallel approach and controlled speed for landing on the LNG terminal docking fenders. The tugboats hold the LNG vessel alongside until secured to the LNG fuel storage units. Once docked, the LNG vessel is connected to the receiving terminal via flexible cryogenic hoses.

The power plant is intended to initially procure six floating power barges generating a nominal 650 MW per barge, resulting in 3 900 MW installed generation capacity. Depending on Eskom’s needs, additional barges could thereafter be procured with the potential to deploy ten units with a maximum generating capacity of 6 500 MW. This flexible setup ensures scalability without compromising the efficiency of existing operations.

At full capacity (6 500 MW), the NIFPP will be bigger than the Medupi coal-fired power station, which – with a total installed capacity of 4 584 MW – is Eskom’s largest power station. As a matter of interest: The NIFPP will also be more than three times bigger than the Koeberg Nuclear Power station, which has two reactors capable of delivering 970 MW each to the national grid.

The single most viable technology to materially improve the current power crisis in the shortest possible timeline is Combined Cycle Gas Turbines (CCGTs) fuelled by Liquefied Natural Gas (LNG). Eskom has always used single-cycle gas turbines as peaking plants (emergency supplies of electricity during peak demand), but has fired them using uneconomic diesel as fuel source. The CCGT technology has a twofold benefit: it not only provides quick-to-market electricity so desperately needed to meet the power demands in South Africa, but also assists in stabilising the national grid as turbine technology rapidly responds to surge demand.

The geographical location of the terminal will mean transmission of the regasified LNG will be via a new gas pipeline, which would connect with the existing Lilly gas pipeline running from Secunda to Durban via Empangeni.

The connection with the Lilly pipeline can be completed within 40 months from financial close. An environmental impact assessment (EIA) will have to be conducted on the cryogenic pipeline, but since it is going to run parallel to the Lilly pipeline and therefore along the same servitude, the EIA process could be done within 12 months, followed by a 12-month construction phase.

The 600 km-long, 16-inch Lilly gas pipeline was originally built in 1973 as part of a longer refined multi-products pipeline, carrying refined products from Durban to the Witwatersrand. In 1995, most of the pipeline was repurposed as a gas pipeline, carrying methane-rich gas (MRG) in the opposite direction (from Secunda to Durban), with additional off-take points at Newcastle and Empangeni/Richards Bay. The Lilly gasline is owned by Transnet.

Anchor Energy LNG has a proven ability to secure long-term LNG import contracts under competitive terms, ensuring a stable and cost-effective fuel source for the project. There are a number of potential suppliers, amongs which are Sojitz (Japan), Angola LNG, Exxon, Total, Chiniere (USA), SEMPRA (USA) and Kazakhstan LNG.

The project infrastructure consists of a series of concrete jetties located on marine piles, offloading berths, LNG Floating Storage Units (FSUs), cryogenic LNG storage tanks, on-demand regasification technology and a series of marine berths for the NIFPP.

The offshore LNG terminal and power plant have a substantially smaller physical footprint compared to an onshore facility of equivalent capacity. This results in reduced capital expenditure compared to land-based alternatives, further enhancing cost-efficiency.

By using the same marine infrastructure for LNG import and storage as well as power generation, capital expenditure is shared across the two projects, thereby significantly lowering overall operational costs. The proximity of the LNG terminal to the NIFPP also ensures a swift and energy-efficient transfer of gas, reducing energy losses and delays.

The cryogenic LNG pipeline will be capable of handling 15 million tonnes per annum of LNG, which is enough to address South Africa’s total energy demand following the phasing out of the ROMCO Mozambique gas supply.

Yes. Since the volume of natural gas in a liquid form is 600 times less than its original volume, the cryogenic pipeline will have a much smaller diameter than, for instance, the Lilly pipeline. This pipeline over a distance of more than 400 km is one of the unique features of the Anchor Energy LNG project.

Yes. The pipeline to Secunda will stretch over more than 600 km, which is by order of magnitude the longest in the world. The longest cryogenic pipeline currently is approximately 34 km in length. This pipeline, which belongs to the company Air Products and Chemicals in Louisiana, USA, is used to transport liquefied natural gas and other cryogenic materials from the company’s facilities in the Gulf Coast area of Louisiana to the Houston area in Texas.

The LNG terminal and overwater/overland structure can be completed in 40 months from financial close. Design work is currently in progress in an attempt to engineer a viable solution within the ambit of the overarching project design, to deliver one and a half million tonnes of LNG to the Lilly gas pipeline by mid-2027. The first power to the grid is anticipated to be the first quarter of 2028.

Financial close is when all the project and financing agreements have been signed, all conditions on those agreements have been met, and the private party to the Public Private Partnership (PPP) can start drawing down the financing to start work on the project.

The environmental impact assessment (EIA) process for the proposed cryogenic pipeline will take between 12 and 24 months, depending on whether we would be allowed to use the existing Lilly pipeline servitude. The construction of the pipeline will take about 12 months.

“Bayside” refers to the decommissioned Bayside Aluminium smelter site. Completed in 1971, the Bayside smelter was the first major industry in Richards Bay. Since the area is already developed, falls within the industrial urban edge and has no important environmental sensitivities, the smelter site was identified for Anchor Energy’s new substation and switching yard. Existing buildings will be demolished to make way for the substation and switch yard.

The project is a private initiative to address the ongoing power and energy deficit in South Africa and to tackle the looming gas-supply crisis facing industrial gas users across the country. The LNG terminal is capable of addressing South Africa’s total gas demand following the phasing out of the ROMCO Mozambique gas supply, if so desired by the Government.

The project will put an end to load shedding; stabilise the Eskom grid; stimulate economic growth through job creation, local manufacturing and workforce development; and reduce the country’s carbon footprint. Anchor Energy LNG furthermore plans to introduce dedicated skills-development programmes for the benefit of the uMhlathuze community. A substantial amount will furthermore be allocated for local manufacturing and labour.

The project has the potential to bring highly efficient, decentralised, base-load type electrical power to the South African grid within a relatively short time and at an affordable tariff. By leveraging innovative construction methods and cutting-edge technology, the project will significantly enhance efficiency and reduce operational costs. These savings are expected to translate into more competitive electricity tariffs, benefiting consumers and industries alike, subject to market conditions and legislative support. A larger-scale adoption of the technology would result in an even greater reduction in the base-rate cost of power.

Without any doubt. South Africa's natural gas sector, which is heavily reliant on dwindling imports from Mozambique's Pande and Temane gas fields, faces a critical juncture. Sasol's impending cessation of gas supply by mid-2027 threatens to strand the country's industrial and reticulated base, which emphasises the urgency of addressing this looming "gas cliff". Natural gas demand significantly surpasses supply, with substantial increases projected across industrial, gas-to-power and logistics sectors.

The entire 6 280 MW requirement of KZN is supplied via two High Voltage Alternating Current (HVAC) lines originating at Majuba and Camden in Mpumalanga, some 400 km from Richards Bay. The demand in the province is forecast to grow to 7 562 MW by 2028. Base-load generating capability in Richards Bay as a function of the NIFPP, would eliminate the current scale of line losses and provide a completely new source of power capable of supplying the entire demand of KZN.

Yes, the entire KZN could be removed from the national demand profile. In addition, the flow of electricity could be reversed from KZN back into the National Transmission Network, thereby providing much-needed capacity and stabilisation of the grid.

Anchor Energy LNG is constructing infrastructure associated with the receiving and storage of Liquefied Natural Gas (LNG); the delivery of LNG to the floating power plant and on-demand regasification for use by the power turbines; as well as infrastructure necessary to support the operation of the Nseleni Independent Floating Power Plant (NIFPP).

The US$ 6 billion project will be financed through a combination of debt and equity raised from both international and domestic capital markets, with no capital requirement from the South African taxpayer or any of the state-owned entities.

“NIFPP” stands for the Nseleni Independent Floating Power Plant that the Nseleni Power Corporation (Pty) Ltd is establishing in the Port of Richards Bay. The NIFPP comprises purpose-designed, floating combined-cycle gas turbine (CCGT) power plants and the infrastructure to evacuate power from the NIFPP to the national grid.

The Richards Bay port is unique in that it offers a deep-water harbour suitable for LNG ocean-going tankers, as well as a substantial and relatively easily accessible high-voltage Eskom power transmission infrastructure, which can be utilised to feed the power generated into the national grid.