Exxon Set to Supply LNG to South Africa’s First Import Terminal
IEA Sees Massive Oil Surplus In 2027 As Middle East Supply Returns ExxonMobil and the company developing South Africa’s first LNG import terminal have signed a preliminary agreement for the U.S.
supermajor to supply LNG to the proposed import terminal at the Port of Richards Bay, Zululand Energy Terminal (ZET)saidon Wednesday.
The Zululand Energy Terminal is being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines, and is expected to be South Africa’s first LNG import facility, enabling the import, storage, regasification, and distribution of LNG to both power generation and industrial users.
The Heads of Agreement (HoA) with Exxon is a major milestone for the project, which is expected to help boost gas supply in South Africa and ease its transition from a heavy reliance on coal for power generation.
“The new LNG terminal will position Richards Bay as a key entry point for imported LNG and support the country’s transition toward a more secure and diversified energy mix,” ZET said in a statement.
Currently, South Africaimports natural gasvia a pipeline from Mozambique.
However, South Africa is expected to face a significant gas supply shortfall by 2030, as existing supply from Mozambique’s Pande-Temane fields declines.
“This “gas cliff” presents a risk to power generation, industrial activity, employment and economic growth, reinforcing the need for new gas supply options and enabling infrastructure,” the developer of the first LNG import terminal said.
Andrew Barry, chairman of ExxonMobil LNG Market Development Inc, commented, “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.” Exxon is betting on the growing South African gas market.
“We’ve identified South Africa as one of the most top priority markets to seed long-term LNG sales into the country,” Shahrukh Mirza, the then vice president of LNG market development and origination at Exxon,saidat an African energy conference in Cape Town in September 2025.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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