SEATTLE (Oil Monster):ExxonMobil is seen eyeing liquefied natural gas (LNG) projects in South Africa. The conoany views the country as a top LNG destination, said an executive at the recently held African Energy Conference in Cape Town, the capital city of South Africa.
Following a drop in imports from neighboring Mozambique, South Africa has been negotiating with Qatar to ensure natural gas supplies to meet its industrial needs. South Africa was one of the top priority markets for ExxonMobil. The potential for importing LNG into the nation is enormous. However, the country lacks necessary import infrastructure, which it needs to build on, noted ExxonMobil.
Since South Africa has committed to switching from coal-fired power plants to cleaner energy sources, studies estimate that the country will need between 6 and 7 gigawatts of new gas-fired power plants.
South Africa had made a billion-dollar, ten-year deal to purchase LNG from the United States earlier in May. Trump's decision to put 30% tariffs on goods from the African nation is the primary reason why the two nations have not yet struck a deal.
In the past, Royal Vopak and ExxonMobil partners worked together to conduct a feasibility study on the evaluation of an LNG regasification terminal in South Africa.
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