Global commodity trader Vitol is backing a consortium developing a planned US$3 billion gas-fired power station and liquefied natural gas (LNG) import terminal at the Port of Durban in South Africa, marking a significant private-sector investment in the continent’s most industrialised economy.
The project forms part of South Africa’s broader strategy to reduce its heavy reliance on coal, which currently accounts for roughly 80% of the country’s electricity generation. Policymakers have identified natural gas as a transitional energy source to stabilise supply while gradually lowering carbon intensity. The initiative also aligns with national plans targeting 16 gigawatts of new gas-fired generation capacity by 2039.
The consortium behind the Durban development includes ACWA Power, Vitol subsidiary Vivo Energy, which merged with Engen in 2024, and terminal operator VTTI. Plans submitted to South African lawmakers outline a proposed 1,000 to 1,800 megawatt combined-cycle gas turbine power plant, supported by associated LNG import infrastructure.
As part of a broader master plan for the Durban marine terminal, approximately 20 hectares of land have been allocated for the development. While the estimated cost is around $3 billion, final timelines, gas sourcing arrangements, and projected import volumes have yet to be disclosed. Vitol has indicated that further updates will be provided as the project advances.
Beyond electricity generation, the development is expected to support expanded gas distribution networks. According to sources familiar with the plans, the project may integrate regasified LNG distribution via the Lilly gas pipeline linking Secunda to Durban, LNG trucking services for industrial and mining customers operating off-grid, and LNG bunkering infrastructure for maritime fuel supply.
The Durban investment underscores Vitol’s growing footprint in Africa’s evolving energy landscape. In December, a Vitol subsidiary agreed to lend up to $2 billion to the Uganda National Oil Company to support petroleum infrastructure expansion, one of East Africa’s largest recent energy financing arrangements. Together, these transactions signal a strategy focused on supporting transitional energy systems while maintaining exposure to emerging African markets.
South Africa’s ongoing electricity challenges, marked by supply shortages and load shedding in recent years, have heightened urgency around diversification. Gas-fired power is viewed as a more flexible complement to renewable sources such as wind and solar, capable of stabilising the grid during peak demand or variable generation periods.
If executed successfully, the Durban LNG and power project could play a pivotal role in reshaping South Africa’s energy mix while strengthening regional gas infrastructure. For Vitol and its partners, the investment represents both a commercial opportunity and a strategic stake in Africa’s energy transition trajectory.
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