South Africa eyes energy security with R15bn energy project that could reshape Richards Bay

South Africa has taken another step forward in plans to develop its first liquefied natural gas (LNG) import terminal

South Africa has taken another step forward in plans to develop its first liquefied natural gas (LNG) import terminal at the Port of Richards Bay.

The move comes as the country faces a possible gas shortage, with supply from Mozambique’s Pande and Temane fields expected to decline as they near the end of their life. The gas is currently transported to South Africa through the ROMPCO pipeline.

The project, which is still in its early stages, is aimed at securing future energy supply by allowing LNG to be imported by ship, stored, and turned back into gas for use in power stations and industry.

Earlier this week, the Zululand Energy Terminal (ZET) signed early agreements with ExxonMobil and power utility Eskom. Eskom is expected to be a key buyer through its planned gas-to-power programme, while ExxonMobil’s involvement points to possible LNG supply support.