American energy giant ExxonMobil has declared its serious intent to import liquefied natural gas into South Africa, with the port of Richards Bay identified as the primary entry point. The supermajor believes a critical window of opportunity has emerged as the country faces a looming gas supply shortfall expected in 2027.
Shahrukh Mirza, vice president of LNG development at ExxonMobil, emphasized the company’s commitment to the South African market. “We’ve identified South Africa as one of our top-priority markets in which long-term LNG sales can be seeded. That means, if we have to build or enable LNG import infrastructure with partnerships, we will do that,” Mirza said.
The company has been studying LNG imports in South Africa for over a decade, but recent developments in the country’s energy landscape have made the proposition more viable. As South Africa’s aging coal-fired facilities are retired and renewable energy projects expand through 2030, LNG is positioned to help fill the resulting power vacuum.
ExxonMobil’s internal studies suggest that between 6 and 7 gigawatts of new combined-cycle, gas-fired power generation facilities will be needed to meet demand. Mirza indicated that the company is working closely with government officials, policymakers, private industry, power generators, and large gas offtakers to realize these plans.
The LNG import terminal at Richards Bay on the Indian Ocean represents just the starting point, with additional facilities expected to be required in the future. The Zululand Energy Terminal at Richards Bay is currently being developed by Vopak Terminal Durban and state-owned Transnet Pipelines.
Source: upstreamonline.com