Zululand Energy Terminal announced Wednesday that ExxonMobil has signed a preliminary supply agreement for the floating LNG import facility being built at the Port of Richards Bay. The site is set to become South Africa's first receiving terminal for liquefied natural gas.
Phase 1 will pair a 170,000 cubic meter floating storage unit with an onshore regasification system capable of handling about 400 million cubic feet a day, or roughly 3 million tonnes per annum. The project sits in the South Dunes Precinct under a 25 year license granted in 2024, with owners Vopak Terminal Durban and Transnet Pipelines targeting a final investment decision in 2028.
The deal lands as South Africa stares down a forecast gas supply shortfall by 2030, when declining output from Mozambique's Pande and Temane fields hits a so called gas cliff. Earlier this month the developer signed a heads of agreement with state owned utility Eskom to anchor the terminal as its foundation customer, tied to a planned 3,000 megawatt gas fired power program in the Richards Bay Industrial Development Zone.
For ExxonMobil, the agreement opens a new outlet in a sub Saharan market that until now has had no LNG import infrastructure. Andrew Barry, chair of ExxonMobil LNG Market Development, said the company sees a strong opportunity to help meet growing demand for secure energy as global LNG markets continue to expand.
For shipping and offshore players, Richards Bay joins a growing list of African ports moving from gas exporter logistics toward import side floating storage and regasification work. If Vopak and Transnet hit their 2028 FID, the terminal would add a steady call pattern for LNG carriers on the east coast of Africa and a fresh anchor demand point for owners chasing long term charter cover.