Transnet, Petredec sign agreement to enhance bulk LPG distribution in South Africa

State-owned logistics infrastructure company Transnet and liquefied petroleum gas (LPG) value chain company Petredec have entered into an agreement to implement a groundbreaking rail freight solution to improve LPG distribution in South Africa.

The agreement will result in Petredec introducing the country's first scheduled LPG train system, which will initially operate up to three times a week.

The rail freight solution will feature a dedicated train system operated by Transnet Freight Rail (TFR), as well as a modern LPG intermodal hub and storage facility at Sentrarand, in Gauteng. Project engineering and construction of the Sentrarand hub will be undertaken by technical partner Lloyd Jones Construction and is due to be commissioned by the first half of 2028.

Once built, the new LPG hub, which will serve as a much-needed staging post for South Africa’s economic heartland and the broader Southern African Development Community region, will receive bulk LPG by rail from an initial load point at the Richards Bay LPG terminal, in KwaZulu-Natal.

“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," says Transnet Group CE Michelle Phillips.

"The strategic partnership between Petredec and TFR 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, optimised 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,” adds Petredec CEO Jonathan Fancher.