Oliver Naidu, Director of Zululand Energy Terminal, and Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc., sign the Heads of Agreement that advances the development of South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay.
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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 development plans for a liquefied natural gas (LNG) import terminal at the Port of Richards Bay gather momentum.
The agreement was announced on Wednesday at the BON Hotel Waterfront Richards Bay and is aimed at advancing LNG supply arrangements for the proposed terminal.
The facility is expected to provide LNG import, storage and regasification infrastructure to support power generation and industrial users.
The latest agreement follows a separate Heads of Agreement recently signed between ZET and Eskom. Under that arrangement, Eskom will serve as a foundation customer for the planned LNG terminal, which is linked to the utility’s proposed 3 000MW gas-to-power programme in Richards Bay.
ZET Director Oliver Naidu said the agreement with ExxonMobil represented an important milestone for South Africa’s LNG import ambitions.
“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,” said Naidu.
He said ExxonMobil’s participation reinforces the strategic importance of Richards Bay as an LNG entry point and supports plans to develop infrastructure needed for a competitive and sustainable gas market.
The project comes as South Africa faces concerns over future gas supply. Gas imports from Mozambique’s Pande and Temane fields, transported through the ROMPCO pipeline, are expected to decline as the fields approach the end of their productive life.
Transnet Group Chief Executive Michelle Phillips said the state-owned company remains committed to supporting infrastructure that strengthens the country’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,” Phillips said.
Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc., said the agreement reflects ExxonMobil’s global LNG experience and commitment to supporting South Africa’s energy security.
“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,” he said.
The agreement is the latest development in a project expected to attract billions of rand in investment to the Richards Bay region.
IOL
Transnet Group Chief Executive Michelle Phillips said the state-owned company remains committed to supporting infrastructure that strengthens the country’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,” Phillips said.
Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc., said the agreement reflects ExxonMobil’s global LNG experience and commitment to supporting South Africa’s energy security.
“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,” he said.
The agreement is the latest development in a project expected to attract billions of rand in investment to the Richards Bay region.
IOL