ExxonMobil inks LNG supply deal for South Africa’s first Richards Bay terminal
XOM•ExxonMobil signed a Heads of Agreement to supply LNG to Zululand Energy Terminal, South Africa’s first import facility at Richards Bay, supporting gas storage, regasification and distribution for power and industry users. The JV between Vopak Terminal Durban and Transnet aims to address a forecasted gas supply shortfall by 2030.
1. Heads of Agreement for LNG Supply
ExxonMobil has signed a preliminary Heads of Agreement with Zululand Energy Terminal to supply LNG to South Africa’s first import facility at Richards Bay. Under the agreement, ExxonMobil will export LNG cargoes to the terminal, providing feedstock for regasification and onward distribution to power generation and industrial end users.
2. Terminal Development and JV Partners
The Richards Bay project is being developed by a joint venture between Vopak Terminal Durban and Transnet Pipelines, with plans for LNG import, storage, regasification and distribution infrastructure. The terminal is designed to position Richards Bay as a key entry point for international LNG shipments and enhance logistics capacity in the region.
3. Addressing South Africa’s Gas Shortfall
South Africa currently imports natural gas through a pipeline link to Mozambique’s Pande-Temane fields, but those supplies are projected to decline leading to a gas shortfall by 2030. The new LNG import terminal is expected to diversify the country’s energy mix, secure additional fuel supplies for power plants and industrial operations, and mitigate risks from the anticipated gas cliff.
