In South Africa, where energy infrastructure is still developing, LNG Hub is leading the charge in providing liquefied natural gas (LNG) through the development of Import Regas Distribution Depots (IRDDs). The first of these depots is currently being developed in Richards Bay, KwaZulu-Natal. While government-backed projects work towards large-scale LNG terminals, the journey to a fully operational national network is lengthy.
This is where small-medium scale IRDDs play a critical role. These depots enable LNG Hub to establish energy hubs that meet immediate industrial needs while larger terminals remain under development. IRDDs offer the advantage of rapid deployment and can supply industries in areas where large infrastructure may take years to be realised.
IRDDs aren’t a stopgap—they’re strategic infrastructure designed to meet today’s energy needs while preparing South Africa for tomorrow’s LNG future.
A common concern among stakeholders is whether small-medium scale solutions like IRDDs can integrate into the larger LNG infrastructure expected in the near future. However, international case studies show that IRDDs can indeed integrate successfully and add value to broader networks.
Global Case Studies
- Rotterdam Port, Netherlands: A 30,000m³ small-scale terminal launched in 2017 delivers around 200,000 tonnes of LNG annually. Integrated into the larger port infrastructure, it supports both industrial and marine applications while reducing emissions.
- Japan’s Regional LNG Terminals: Terminals like Yokohama have served regional industries since 2000. By 2018, over 300,000 tonnes of LNG were supplied annually via small terminals, effectively integrated into the national grid.
- Finland’s Skangas Facility: Established in 2011, it supplies 150,000 tonnes per year and supports both standalone usage and the Nordic LNG network—proving the viability of small-medium scale integration.
These examples demonstrate that IRDDs are not only compatible with larger networks but also enhance flexibility and efficiency. As South Africa prepares for major LNG investments, LNG Hub’s approach of developing IRDDs provides a practical bridge between today’s energy gaps and tomorrow’s infrastructure.
The article continues below:
Supporting Downstream LNG Supply
Import Regas Distribution Depots (IRDDs) are designed not only to serve industrial users near the depot site but also to act as vital nodes in the downstream LNG supply chain. These depots can enable road or rail distribution of LNG to users in landlocked or remote regions, where traditional pipeline infrastructure is unavailable or cost-prohibitive.
By decentralising access points, IRDDs expand the reach of LNG across the country—offering a flexible, mobile supply solution that supports the wider transition to cleaner fuels in manufacturing, mining, agriculture, and transport sectors.
IRDDs aren’t a temporary fix—they are an essential component of the country’s evolving energy future.
By addressing today’s industrial energy needs, LNG Hub is laying the groundwork for a scalable and integrated network. Starting with Richards Bay, IRDDs will support the national grid once large import terminals are live.
