LNG import terminal milestone signed

Zululand Energy Terminal advances LNG import project with ExxonMobil

SOUTH AFRICA: The country reached a new milestone in the development of the new LNG terminal in Richards Bay that aims to position the port as a key entry point for imported LNG and support the South Africa’s transition toward a diversified energy mix.

The Zululand Energy Terminal (ZET) has signed a Heads of Agreement (HoA) with ExxonMobil South Africa LNG Ltd, an affiliate of the global energy major ExxonMobil, that signals international market interest in supplying LNG to South Africa and supports the continued development of infrastructure required to establish a new gas import platform for the country.

“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,” said Oliver Naidu, Director of ZET.

Noting the support of Transnet, Michelle Phillips, Group Chief Executive emphasised the SOE’s commitment 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,” she said.

South Africa is expected to face a significant gas supply shortfall by 2030, as existing supply from Mozambique’s Pande-Temane fields declines.

The Zululand Energy Terminal, being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines, 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. Once operational, the terminal is expected to:

◼︎ Strengthen South Africa’s energy security.
◼︎ Support the development of a gas market in South Africa.
◼︎ Enable industrial growth and competitiveness.
◼︎ Facilitate a balanced energy transition alongside renewable energy.

PHOTO: Proposed terminal layout. The selected site for the marine facility is Berth 207 in the Port of Richards Bay’s South Dunes precinct, identified in Transnet's Port Development Framework Plan for a liquefied natural gas (LNG) import facility based on a floating storage unit (FSU).

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