Dutch tank storage and terminal operator Vopak has delayed its final investment decision (FID) on South Africa’s first liquefied natural gas import terminal, pushing the timeline to the first quarter of 2028 — a two-year setback for a project long seen as a cornerstone of the country’s gas-to-power ambitions.
The delay is linked to a September court ruling that halted power utility Eskom’s plans to develop a 3,000 megawatt gas-fired power plant at Richards Bay — a key anchor project that Vopak had been counting on to underpin demand for the terminal. With Eskom’s plant plans on hold, Vopak extended its pre-FEED study, the early-stage engineering work required before committing to the full project investment.
Vopak was selected in 2024 alongside Transnet Pipelines as part of a consortium to build and operate the Zululand Energy terminal at Richards Bay port under a 25-year concession. The two-phase project is estimated to cost approximately $1 billion and was originally intended to begin importing two million tonnes per annum (mtpa) of LNG by 2027, with a planned ramp-up to five mtpa. Those timelines are now under review.
Despite the setback, Vopak said it expects to sign preliminary agreements with Eskom and potentially US energy major ExxonMobil in the coming months, covering LNG use and distribution. ExxonMobil, which had previously identified South Africa as a top-priority LNG market, is considered among the terminal’s strongest prospective customers.
Source: Biz Community