Zululand Energy Terminal has signed a Heads of Agreement with ExxonMobil South Africa LNG Ltd for LNG supply into a planned import terminal at the Port of Richards Bay, according to Zululand Energy Terminal.
The agreement gives ZET a major commercial anchor for a project billed as South Africa’s first LNG import facility and aimed at opening a new gas import route for the country.
The terminal is being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines, with ZET to design, build and operate the infrastructure under a 25-year concession.
The project is intended to handle LNG import, storage, regasification and distribution to power generation and industrial users.
ZET said the terminal is expected to support energy security, the creation of a domestic gas market, industrial competitiveness and a balanced energy transition alongside renewable energy.
The development comes as South Africa is expected to face a significant gas supply shortfall by 2030 as output from Mozambique’s Pande-Temane fields declines, creating a “gas cliff” that could affect power generation, industry, jobs and economic growth.