HomeNewsExxonMobil to supply South Africa's first planned LNG terminal

ExxonMobil to supply South Africa's first planned LNG terminal

6/17/2026

ExxonMobil has signed a preliminary deal to supply liquefied natural gas to Zululand Energy Terminal, which will be South Africa's first LNG import facility once built, the companies said on Wednesday.

  • The planned terminal is part of South Africa's pivot away from coal-fired power generation, which accounts for the bulk of its electricity supply.
  • Media reported in March that the Zululand Energy Terminal (ZET) hoped to strike a deal with ExxonMobil on LNG supply.
  • ExxonMobil's participation helps reinforce the importance of Richards Bay port, where ZET is being built on South Africa's east coast, as an entry point for LNG and supports plans to unlock a "competitive and sustainable gas market", said Oliver Naidu, ZET director.
  • ExxonMobil has identified South Africa as a priority market and wants to grow its LNG supply to more than 40 metric MMtpy by 2030.
  • "This agreement reflects ExxonMobil's global LNG experience and our commitment to support South Africa's energy security with reliable supply," said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc.
  • Earlier this month, South African state power utility Eskom signed a long-term LNG agreement with ZET that will support a planned 3,000 megawatt gas-to-power plant project (LEARN MORE).
  • Phase 1 of the terminal includes a floating storage unit and an onshore regasification system with capacity of around 3 MMtpy, or 400 MMft3d of gas.
  • Phase 2, which will bring the project's total expected cost to $1 B, will introduce extra regasification capacity and storage onshore, boosting total volumes to 4.5 MMtpy, or about 600 MMft3d, Naidu said.

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