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ExxonMobil South Africa LNG, an affiliate of U.S.-headquartered energy heavyweight ExxonMobil, has penned a heads of agreement (HoA) with a strategic partnership between Vopak Terminal Durban and Transnet Pipelines to advance the development of a liquefied natural gas (LNG) import terminal at the Port of Richards Bay, South Africa.
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ExxonMobil’s HoA with the Zululand Energy Terminal (ZET) , a joint venture between Vopak and Transnet, is interpreted to signal international market interest in supplying LNG to South Africa, supporting the continued development of infrastructure required to establish a new gas import platform for the country.
Oliver Naidu , Director of ZET, commented: “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. The participation of a global energy leader such as ExxonMobil reinforces the strategic importance of Richards Bay as an entry point for LNG and supports our vision of developing the infrastructure needed to unlock a competitive and sustainable gas market.”
The new LNG terminal is expected to position Richards Bay as a key entry point for imported LNG and support the country’s transition toward a more secure and diversified energy mix. South Africa is expected to face a significant gas supply shortfall by 2030, as existing supply from Mozambique’s Pande-Temane fields declines.
This gas cliff is said to present a risk to power generation, industrial activity, employment and economic growth, reinforcing the need for new gas supply options and enabling infrastructure. The Zululand Energy Terminal is expected to be South Africa’s first LNG import facility, enabling the import, storage, regasification and distribution of LNG to both power generation and industrial users.
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Michelle Phillips , Group Chief Executive of Transnet, remarked: “Transnet remains committed to supporting strategic infrastructure that strengthens South Africa’s long-term energy security and industrial competitiveness. Through Transnet Pipelines’ partnership in the Zululand Energy Terminal, we continue to support the development of critical LNG import infrastructure at Richards Bay.”
Once operational, the LNG terminal is expected to strengthen South Africa’s energy security, support the development of the country’s gas market , enable industrial growth and competitiveness, and facilitate a balanced energy transition alongside renewable energy.
Andrew Barry , Chairman of ExxonMobil LNG Market Development, underlined: “This agreement reflects ExxonMobil’s global LNG experience and our commitment to support South Africa’s energy security with reliable supply. With LNG markets continuing to expand globally, we see a strong opportunity to help meet growing demand for secure energy and look forward to working with ZET to progress this opportunity.”
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Based on the previously disclosed plans, the project is to be executed in two phases. Phase 1 entails the development of a floating storage unit (FSU) with a capacity of 135,000-174,000 cubic meters, onshore regasification infrastructure capable of around 400 mmscfd, and optional truck loading facilities. A new pipeline connection will link the terminal to the Lilly Pipeline via Empangeni, with a tie-in point for Richards Bay Industrial Development Zone customers.
On the other hand, Phase 2 covers the construction of an onshore storage tank with a capacity of up to 220,000 cubic meters, replacing the FSU to increase send-out capacity to about 600 mmscfd, accommodating planned gas-to-power projects in Richards Bay and future gas users nationwide.
Maarten Smeets , Chairman of ZET, said: “Signing this HoA with ExxonMobil strengthens the base for the development of a terminal with one of the world’s largest energy companies. Via the terminal, South Africa ensures access to the global LNG market to further strengthen its energy mix by gaining access to affordable and reliable supply.”
Under a 25-year concession, ZET intends to design, construct and operate critical gas infrastructure that unlocks reliable LNG supply for industry and power generation. The project is anticipated to strengthen energy security, attract investment, create new economic opportunities across KwaZulu-Natal, and support South Africa’s evolving energy landscape.
about 1 month ago
ExxonMobil South Africa LNG, an affiliate of U.S.-headquartered energy heavyweight ExxonMobil, has penned a heads of agreement (HoA) with a strategic partnership between Vopak Terminal Durban and Transnet Pipelines to advance the development of a liquefied natural gas (LNG) import terminal at the Po
