The Richards Bay LNG import terminal has lined up a preliminary supply agreement with ExxonMobil, as work continues to develop new gas import infrastructure at the port.
The agreement follows the signing of a Heads of Agreement between Eskom and Zululand Energy Terminal (ZET) earlier this month under which the utility agreed to become the foundation customer for the planned terminal.
The terminal is being developed by ZET, a joint venture between Vopak Terminal Durban and Transnet Pipelines, which was awarded a 25-year concession by Transnet National Ports Authority to develop and operate the facility.
Phase 1 of the project is planned to include a floating storage unit and an onshore regasification system with capacity of about three million tonnes per annum of LNG. A second phase would add further regasification and storage capacity.
The development forms part of a broader expansion of logistics infrastructure in Richards Bay. Other projects under way include Transnet's private sector participation process for the Richards Bay Dry Bulk Terminal, a container terminal being developed by Grindrod and Eyamakhosi Resources under a concession agreement with TNPA, upgrades to the Bayvue Rail Yard and Newark Road, and a planned 20 MW solar plant.
