ZET says ExxonMobil agreement further strengthens LNG terminal’s commercial foundation
The Zululand Energy Terminal (ZET), which is aiming to build South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay in KwaZulu-Natal, has signed heads of agreement with an ExxonMobil affiliate – a move that it says signals international market interest in supplying LNG to the country.
It is the second heads of agreement signed by ZET this month, with the first signed on June 5 with Eskom.
Through that initial agreement, the State-owned electricity producer outlined its intention to be a ‘foundation customer’ for the terminal, using the gas in a 3 000 MW gas-to-power (GtP) project it plans to build in Richards Bay in partnership with private investors and at a cost of up to R100-billion.
Speaking at the most recent signing, ZET director Oliver Naidu said the agreement with ExxonMobil South Africa LNG would further strengthen the commercial foundations of the project, earmarked for Berth 207 in the port’s South Dunes precinct and which could cost some R15-billion to build.
