Petredec, Transnet enter deal to enhance South Africa's LPG distribution
Adds details in paragraphs 2-6, CEO quote in paragraphs 5
JOHANNESBURG, Sept 4 (Reuters) -Petredec, a leading liquefied petroleum gas (LPG) company, and South Africa's state-owned logistic firm Transnet have agreed a deal for bulk distribution ofLPG using railin thecountry, Transnet said on Wednesday.
The project, expected to become operational in 2028, will feature a dedicated LPG railing system from the east coast to the Sentrarand hub in South Africa's economic hub, Gauteng province.
The new system will help South Africa distribute LPG to meet rising future demand, company executives said.
South Africa has struggled in the past to secure adequate supplies of the gas mainly used in household cooking.
"The strategic partnership between Petredec and Transnet Freight Rail marks a significant step in improving LPG accessibility in South Africa," Jonathan Fancher, CEO of Singapore-headquartered Petredec said in a joint statement.
The hub will receive bulk LPG via rail from a loading point at Richards Bay LPG terminal along the east coast. Each 75-wagon train set will be capable of transporting more than 2,500 metric tons of LPG and will initially operate up to three times a week, officials said.
Writing by Wendell Roelf and Tannur Anders, Editing by Louise Heavens
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