ExxonMobil backs South Africa's first LNG import terminal project
(WO) — Zululand Energy Terminal (ZET) has signed a Heads of Agreement (HoA) with ExxonMobil South Africa LNG Ltd., advancing plans for South Africa's first liquefied natural gas (LNG) import terminal at the Port of Richards Bay.
The agreement signals ExxonMobil's interest in supplying LNG to the proposed facility and marks another milestone in the development of infrastructure intended to address South Africa's growing natural gas supply challenge.
South Africa is expected to face a significant gas supply shortfall by 2030 as production from Mozambique's Pande-Temane gas fields declines. Industry stakeholders have warned that the resulting "gas cliff" could affect power generation, industrial operations and economic growth unless alternative gas supplies are secured.
The Zululand Energy Terminal is being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines. The facility is expected to provide LNG import, storage, regasification and distribution services to power generation and industrial customers.
“This agreement represents more than a commercial milestone; it is a strong vote of confidence in the Zululand Energy Terminal and the future of LNG in South Africa,” said Oliver Naidu, director of ZET. “The participation of a global energy leader such as ExxonMobil reinforces the strategic importance of Richards Bay as an entry point for LNG.”
ExxonMobil said the project aligns with efforts to support South Africa's long-term energy security through access to global LNG markets.
“This agreement reflects ExxonMobil's global LNG experience and our commitment to support South Africa's energy security with reliable supply,” said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc. “We see a strong opportunity to help meet growing demand for secure energy.”
According to project developers, the terminal is expected to strengthen energy security, support development of a domestic gas market, improve industrial competitiveness and provide a complementary energy source alongside renewable power generation.
The Richards Bay facility would establish a new LNG import platform for South Africa and create access to international gas supplies as domestic and regional sources decline.
