In a project that has not been previously reported, global commodity trader Vitol has confirmed it is backing a consortium planning to construct a $3 billion gas-fired power station and LNG import facility at South Africa’s Durban port — one of the most significant energy infrastructure announcements in the country in years.
The consortium includes Saudi Arabia’s ACWA Power, Vitol unit Vivo Energy — which merged with Engen in 2024 — as well as terminal operator VTTI. Together, they are advancing the development of a 1,000 to 1,800 megawatt combined cycle gas turbine (CCGT) power generation plant with associated LNG importation infrastructure at the port’s marine terminal.
The project received Strategic Integrated Projects status from the South African government in September last year, a designation that fast-tracks development by reducing bureaucratic and licensing hurdles. As part of the Durban marine terminal master plan, 20 hectares of land have already been reserved for the project.
A Vitol spokesperson confirmed the estimated cost at approximately $3 billion, while cautioning that timing remains uncertain. “We shall provide updates as and when we are in a position to do so,” the spokesperson said, adding it was too early to determine where LNG cargoes would be sourced.
Beyond power generation, a source with knowledge of the project said it plans to deliver regasified LNG through the Lilly gas pipeline — which links Secunda to Durban — and to supply LNG trucking for off-grid industrial and mining operations, as well as LNG bunkering for shipping. South Africa has identified gas as critical to its energy transition, targeting 16 gigawatts of new gas generation capacity by 2039 as it moves away from coal-fired power plants, which currently supply the bulk of electricity to Africa’s most industrialised economy.
SOURCE: bizcommunity.com