ZET, ExxonMobil Agree on South Africa LNG Terminal
By Carolina Curiel | Published
MONTREAL (Oil Monster): Zululand Energy Terminal (ZET) has signed a heads of agreement (HoA) with ExxonMobil South Africa LNG, an ExxonMobil affiliate, toward developing South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay. The agreement is expected to facilitate LNG imports into South Africa.
Vopak and Transnet to Develop and Operate Terminal
A consortium of Vopak Terminal Durban and Transnet Pipelines will develop and operate the planned terminal. Its responsibilities will include designing, building, financing, operating and maintaining the facility for 25 years.
Officially named the Zululand Energy Terminal project, the facility will be located in Richards Bay’s South Dunes Precinct.
Richards Bay to Provide LNG Import Infrastructure
Once operational, the terminal will provide LNG import, storage, regasification and distribution infrastructure, positioning Richards Bay as a key gateway for LNG imports into South Africa.
The terminal will strengthen the country’s energy security and support development of the domestic gas market.
Project Comes Amid Projected Gas Supply Shortage
The project comes amid projections that South Africa is likely to face a significant gas supply shortage by the end of the current decade, due to declining production from Mozambique’s Pande-Temane gas fields.