SEATTLE (Oil Monster): The Zululand Energy Terminal (ZET) has signed a heads of agreement (HoA) with ExxonMobil South Africa LNG, an affiliate of ExxonMobil, towards 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.
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The planned LNG import terminal will be developed and operated by a consortium of Vopak Terminal Durban and Transnet Pipelines, which will be responsible for designing, building, financing, running, and maintaining the terminal for a period of 25 years. The project is officially named the Zululand Energy Terminal project. The facility will be located in Richards Bay’s South Dunes Precinct.
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 boost the development of the domestic gas market.
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.
