Petredec and Transnet Freight Rail Enter Agreement to Enhance LPG Distribution in South Africa

Singapore (Sept. 4, 2024) — Petredec, a leading liquefied petroleum gas (LPG) value chain company, and South Africa’s state-owned logistics infrastructure company, Transnet, announced a groundbreaking rail freight solution that is set to transform LPG distribution in South Africa. This landmark project, featuring a dedicated train system, modern LPG intermodal hub and storage facility at Sentrarand in Gauteng, marks a significant milestone and investment in the country’s energy infrastructure, which is needed to meet the growing demand for LPG over the coming decades.

The new LPG hub at Sentrarand, Benoni, will serve as a much-needed staging post for South Africa’s economic heartland and the broader SADC region. The hub will receive bulk LPG via rail from the initial load point at the Richards Bay LPG terminal in KwaZulu-Natal, developed in partnership with Bidvest Tank Terminals in 2020. Through the project, Petredec will introduce South Africa’s first scheduled LPG train system, with each 75-wagon trainset capable of transporting over 2,500t of LPG. Initially operating up to three times per week, this enhanced logistics system will further improve the efficiency, cost-effectiveness and environmental friendliness of LPG distribution in the country.

“The strategic partnership between Petredec and Transnet Freight Rail marks a significant step in improving LPG accessibility in South Africa. This investment reflects our commitment to developing key LPG infrastructure and implementing more efficient, optimized logistical solutions — ultimately making LPG more affordable to end users. Our goal is clear: to make clean cooking solutions like LPG more accessible to those who need it, thus contributing to a broader vision of improved energy security, public health, energy affordability and environmental conservation in South Africa and beyond,” said Jonathan Fancher, CEO of Petredec.

Michelle Phillips, Transnet Group chief executive, commented, “This landmark project marks a major advancement in the supply of LPG across the country, enabling bulk distribution of LPG on a scale never before achieved in Africa. The Sentrarand LPG hub and rail freight solution is critical infrastructure that will support South Africa’s long-term energy security and developmental ambitions.”

The Sentrarand LPG rail intermodal hub represents the latest investment by Petredec, reinforcing the company’s dedication to bringing cleaner energy to those that need it most. This initiative is particularly crucial in the context of sub-Saharan Africa, where, according to the International Energy Agency, 1 billion people still rely on solid biomass and kerosene for cooking, disproportionately negatively impacting women and girls. Such investments in LPG infrastructure can greatly enhance the affordability and accessibility of clean cooking solutions, delivering substantial health, developmental and environmental benefits to the region.

Project Engineering and Construction will be undertaken by long-standing technical partner Lloyd Jones Construction with the intended commissioning of the Sentrarand facility and operation of first trains commencing in 1H 2028.