The Zululand Energy Terminal (ZET) has signed a Heads of Agreement with ExxonMobil South Africa LNG Ltd
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The Zululand Energy Terminal (ZET) has signed a Heads of Agreement with ExxonMobil South Africa LNG Ltd, an affiliate of ExxonMobil, as plans progress for the development of a liquefied natural gas (LNG) import terminal at the Port of Richards Bay.
IOL previously reported that billions of rand in investments are set to flow into the Richards Bay region following the announcement that a liquefied natural gas facility will be constructed in the area.
The agreement, announced on Wednesday at BON Hotel Waterfront Richards Bay, is aimed at advancing LNG supply arrangements for the proposed terminal, which is expected to provide import, storage, and regasification infrastructure for power generation and industrial users.
This comes after ZET recently signed a separate Heads of Agreement with Eskom, under which the utility will act as a foundation customer for the planned LNG terminal linked to its 3 000MW gas-to-power programme in Richards Bay.
Oliver Naidu, Director of Zululand Energy Terminal, said the agreement marks an important step in advancing South Africa’s LNG import plans.
“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," Naidu said.
"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.”
Michelle Phillips, Group Chief Executive of Transnet, said the organisation remains committed to supporting strategic infrastructure that strengthens South Africa’s long-term energy security and industrial competitiveness.
It was previously reported that South Africa is facing a growing threat to jobs and industry as a looming “gas cliff” raises the risk of widespread disruptions to energy supply, as gas supplies from Mozambique’s Pande and Temane fields, which are transported to South Africa through the ROMPCO pipeline, are expected to decline as the fields near the end of their productive life.
“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.”
Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc., said the agreement shows ExxonMobil’s experience in LNG and its support for South Africa’s energy needs.
“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.”
IOL