Liquid petroleum gas terminal on the horizon at Walvis Bay

Erongo LPG held its groundbreaking ceremony for its 10 500 cubic metre liquid petroleum gas terminal near the Walvis Bay North Port on Friday.

Set at a cost of US$27 million (planning and construction), with construction set to take place over 16 months.

Speaking at the event, Walvis Bay mayor Trevino Forbes welcomed the development, saying it positions Namibia as an emerging international hub for the storage and handling of liquefied petroleum gas (LPG).

"The construction of this state-of-the-art terminal will be instrumental in meeting not only Namibia’s growing demand for LPG but also in serving the needs of neighbouring countries and regions."

"The terminal will ensure that we can accommodate current and future demands, paving the way for efficient supply chains and reliable access to energy resources. The secured offtake agreements in place demonstrate the confidence that both local and international partners have in this project, as well as in Namibia’s strategic role in the regional energy landscape," he added.

He explained that in terms of economic implications, the construction phase will create numerous jobs, stimulating local economies and providing training opportunities for skilled labour.

Upon completion, the terminal will support long-term employment opportunities.

Surge in development

Erongo LPG chairman Trevor Brockerhoff said the terminal concept came about six to seven years ago.

"Phase 1 entails the 10 500 cubic meter terminal, with plans for further expansion. The terminal will not only serve Namibia but also our neighbours – Zambia, Botswana, Zimbabwe, and hopefully the Northern Cape as well."

Namcor interim managing director Ebson Uanguta said the development will not only support the diversification of the energy sector but also ensure that Namibia is better positioned to meet the growing demand for clean, reliable and accessible energy for the entire SADC Region.

"The ripple effects of such advancements will be felt far beyond Walvis Bay and the Erongo Region, potentially setting the stage for a nationwide surge in development, industry and investment."

He added that LPG, as a cleaner and more efficient fuel, is vital for households and industries alike.

"As Namibia strives toward energy diversification and improved energy security, this project plays a critical role in addressing energy poverty while supporting our green energy agenda."

Furthermore, “Namcor stands ready to support projects like the Erongo LPG terminal, which align with our vision for a prosperous and energy-independent Namibia. We are proud to be part of this initiative, which will help address the LPG shortage in the sub-region. More importantly, as a more environmentally friendly alternative to paraffin and wood, LPG is set to become a common household product for cooking and heating."

Erongo Governor Neville Andre added that the Covid-19 pandemic has illustrated just how fragile the local LPG industry is, with all imports coming from South Africa.

"The problem faced by Namibia and neighbouring landlocked countries is that all are 100% dependent on supply from South Africa. Unfortunately, the refineries in South Africa are too old and frequently experience unscheduled shutdowns, leaving all immediate neighbouring countries struggling with the supply of LPG to end users."