South Africa: ExxonMobil Signs Preliminary Deal To Supply LNG To First Import Facility

ExxonMobi, American oil and gas giant has entered into a preliminary agreement to supply liquefied natural gas (LNG) to South Africa’s Zululand Energy Terminal (ZET), which is set to become the country’s first LNG import facility once construction is completed, Reuters reported.

The planned terminal forms part of South Africa’s broader transition away from coal-fired power generation, which still provides the majority of the country’s electricity supply.

ZET was aiming to finalize an LNG supply agreement with ExxonMobil within the coming months, Reuters reported in March.

ExxonMobil’s participation underscores the strategic importance of Richards Bay Port, where ZET is being developed on South Africa’s east coast, as a key entry point for LNG. The project also supports plans to establish a competitive and sustainable gas market, according to Oliver Naidu, a director at ZET.

ExxonMobil has designated South Africa as a priority market and is targeting growth in its LNG supply business to more than 40 million metric tons per year by 2030.

“This agreement reflects ExxonMobil’s global LNG experience and our commitment to supporting South Africa’s energy security through a reliable supply,” said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc.

Earlier this month, South Africa’s state-owned power utility, Eskom, signed a long-term LNG supply agreement with ZET to support a planned 3,000-megawatt gas-to-power project.