Dutch storage firm Vopak and US-based energy giant ExxonMobil are joining forces to build an import facility and bring LNG to South Africa.
Units of the two firms signed a memorandum of understanding to work on a feasibility study. The study would assess the commercial, technical and regulatory aspects of a regasification terminal in South Africa, according to a joint statement on Tuesday.
Additionally, ExxonMobil and Vopak say the plan is to evaluate the infrastructure critical for South Africa needed to take advantage of the benefits that LNG can bring to the country.
This includes providing a “reliable, cost-effective fuel source, as well as an option for reducing emissions,” the statement said.
Furthermore, repurposing older coal power plants, converting peaking power plants and securing supply for South Africa’s industrial sector could be the way to achieve these benefits, they said.
ExxonMobil LNG market development president Irtiza Sayye said the firm is “excited to work with Vopak to bring competitive LNG projects to South Africa.”
He added that ExxonMobil has strategic access to LNG supplies around the world, and the firm is “well-positioned to supply cleaner, reliable energy to power South Africa in the future.”
Kees van Seventer, President, Vopak LNG, said the collaboration would allow the firm to leverage its global expertise and experience to develop “resilient and efficient LNG infrastructure for South Africa.”
