ExxonMobil has signed a preliminary deal to supply liquefied natural gas to the proposed Zululand Energy Terminal, which will become South Africa’s first LNG import facility once constructed, the companies announced Wednesday.
The agreement supports South Africa’s strategic shift away from coal-fired plants, which currently generate roughly 80% of the national power supply, toward cleaner, flexible baseline energy sources.
The deal advances ExxonMobil’s corporate goal to double its global LNG supply to over 40 million metric tons per annum by 2030, identifying South Africa as a priority market.
The terminal, located at the east coast port of Richards Bay, is being developed by a joint venture consisting of Dutch firm Royal Vopak and state-owned Transnet Pipelines.
Earlier this month, state power utility Eskom signed a long-term agreement with the terminal to secure fuel for its planned 3,000-megawatt gas-to-power plant project within the local industrial zone.
Phase one of the terminal deployment will utilize a floating storage unit with a capacity up to 174,000 cubic meters, delivering 400 million standard cubic feet of gas daily.
A planned second phase replaces the floating vessel with a 220,000-cubic-meter onshore storage tank, lifting total facility delivery capacity to 600 million standard cubic feet per day.
The developers expect to reach a final investment decision later this year, using a new pipeline connection to link the import terminal directly into the inland Lilly Pipeline network.
