Contractor process opens for LNG terminal

The Zululand Energy Terminal (ZET) has launched a contractor selection process for the proposed liquefied natural gas (LNG) import terminal at the Port of Richards Bay.

ZET announced on June 19 that it had issued an Expression of Interest (EOI) for engineering, procurement and construction (EPC) contractors for the proposed terminal. The process is the first stage of a procurement programme that will progress through a Request for Information (RFI) and ultimately a Request for Proposal (RFP). EPC execution will be subject to ZET's localisation and economic development objectives, it said.

The project is intended to serve as South Africa's primary LNG import gateway and support gas supply for industry and power generation, according to ZET. The terminal is being developed by ZET, a joint venture between Vopak Terminal Durban and Transnet Pipelines, under a 25-year concession in the South Dunes precinct of the Port of Richards Bay.

The development follows a series of recent milestones for the project. Earlier this month, Eskom signed a Heads of Agreement to become the terminal's foundation customer, while ExxonMobil subsequently signed a preliminary LNG supply agreement with ZET.

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