ExxonMobil pens HoA to supply South African LNG terminal

Zululand Energy Terminal announced on Wednesday that it has signed the initial agreement with ExxonMobil South Africa LNG, an affiliate of ExxonMobil, marking “another milestone” in the development of South Africa’s first LNG import terminal at the Port of Richards Bay.

ZET did not provide any details regarding the agreement.

The HoA signals international market interest in supplying LNG to South Africa and supports the continued development of infrastructure required to establish a new gas import platform for the country, ZET said.

“This agreement represents more than a commercial milestone; it is a strong vote of confidence in the Zululand Energy Terminal and the future of LNG in South Africa. The participation of a global energy leader such as ExxonMobil reinforces the strategic importance of Richards Bay as an entry point for LNG and supports our vision of developing the infrastructure needed to unlock a competitive and sustainable gas market,” Oliver Naidu, Director of ZET said.

“This agreement reflects ExxonMobil’s global LNG experience and our commitment to support South Africa’s energy security with reliable supply. With LNG markets continuing to expand globally, we see a strong opportunity to help meet growing demand for secure energy and look forward to working with ZET to progress this opportunity,” Andrew Barry, Chairman of ExxonMobil LNG Market Development, said.

Earlier this month, South Africa’s state power company, Eskom, signed a heads of agreement with ZET to become a foundation customer for the planned LNG import terminal.

Eskom will assume foundation customer status at the proposed terminal that will provide open access to LNG import, storage, and regasification infrastructure, underpinning Eskom’s planned 3 000 MW gas-to-power program.

LNG terminal

In February 2025, South Africa’s Transnet National Ports Authority signed a 25-year terminal operator agreement with the joint venture consisting of Vopak and Transnet Pipelines for South Africa’s first LNG import terminal.

Both TNPA, which is developing an LNG import terminal in the Port of Ngqura, and Transnet Pipeline are part of the South African rail, port, and pipeline company Transnet.

Vopak is developing the LNG import project via its 70 percent-owned joint venture, Vopak Terminal Durban.

The partners plan to develop the project in two phases.

According to ZET, the first phase includes a floating storage unit (FSU) of at least 170,000 cbm capacity and an onshore regasification system with an indicative capacity of 3 mtpa, or about 400 mmscfd, and optional truck loading facilities.

Vopak and Transnet Pipelines plan to take a final investment decision on this phase in 2028.

The second phase includes an onshore LNG tank with a capacity of up to 220,000 cbm, potentialy replacing the FSU, and additional regasification capacity, increasing the total to 4.5 mtpa.