Energy giant Exxon Mobil has signed a preliminary agreement to supply liquefied natural gas (LNG) to South Africa’s planned Zululand Energy Terminal, which is expected to become the country’s first LNG import facility once completed.
The agreement marks a major step in South Africa’s efforts to diversify its energy mix and reduce reliance on coal-fired power generation, which currently provides the majority of the country’s electricity.
The Zululand Energy Terminal (ZET), being developed at the Richards Bay port on South Africa’s east coast, is designed to serve as a gateway for LNG imports and help establish a more competitive domestic gas market.
ZET director Oliver Naidu said Exxon Mobil’s involvement strengthens Richards Bay’s role as a strategic entry point for LNG and supports plans to develop a “competitive and sustainable gas market” in South Africa.
Exxon Mobil said South Africa is a priority market as it expands its global LNG business, with plans to increase LNG supply capacity to more than 40 million metric tonnes per year by 2030.
“This agreement reflects Exxon Mobil’s global LNG experience and our commitment to support South Africa’s energy security with reliable supply,” said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc.
The deal follows an agreement earlier this month between South Africa’s state power utility Eskom and ZET for long-term LNG supplies to support a planned 3,000-megawatt gas-to-power project.
The project is part of broader efforts by South Africa to address electricity shortages while gradually transitioning away from coal, although the country continues to face challenges balancing energy security, affordability and its climate goals.
