June 18, 2026 [LNG Industry]- The Zululand Energy Terminal (ZET) has signed a heads of agreement (HoA) with ExxonMobil South Africa LNG Ltd, an affiliate of the global energy major, ExxonMobil, marking another milestone in the development of South Africa’s first LNG import terminal at the Port of Richards Bay. The HoA signals international market interest in supplying LNG to South Africa and supports the continued development of infrastructure required to establish a new gas import platform for the country.

The new LNG terminal will position Richards Bay as a key entry point for imported LNG and support the country’s transition toward a more secure and diversified energy mix.

Oliver Naidu, Director of ZET, said: “This agreement represents more than a commercial milestone; it is a strong vote of confidence in the Zululand Energy Terminal and the future of LNG in South Africa. The participation of a global energy leader such as ExxonMobil reinforces the strategic importance of Richards Bay as an entry point for LNG and supports our vision of developing the infrastructure needed to unlock a competitive and sustainable gas market.”

Michelle Phillips, Group Chief Executive of Transnet, added: “Transnet remains committed to supporting strategic infrastructure that strengthens South Africa’s long-term energy security and industrial competitiveness. Through Transnet Pipelines’ partnership in the Zululand Energy Terminal, we continue to support the development of critical LNG import infrastructure at Richards Bay.”

South Africa is expected to face a significant gas supply shortfall by 2030, as existing supply from Mozambique’s Pande-Temane fields declines. This ‘gas cliff’ presents a risk to power generation, industrial activity, employment and economic growth, reinforcing the need for new gas supply options and enabling infrastructure.

The Zululand Energy Terminal, being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines, is expected to be South Africa’s first LNG import facility, enabling the import, storage, regasification and distribution of LNG to both power generation and industrial users. Once operational, the terminal is expected to:

• Strengthen South Africa’s energy security.
• Support the development of a gas market in South Africa.
• Enable industrial growth and competitiveness.
• Facilitate a balanced energy transition alongside renewable energy.

Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc. commented: “This agreement reflects ExxonMobil’s global LNG experience and our commitment to support South Africa’s energy security with reliable supply. With LNG markets continuing to expand globally, we see a strong opportunity to help meet growing demand for secure energy and look forward to working with ZET to progress this opportunity.”

Maarten Smeets, Chairman of ZET, concluded: “Signing this HoA with ExxonMobil strengthens the base for the development of a terminal with one of the world’s largest energy companies. Via the terminal, South Africa ensures access to the global LNG market to further strengthen its energy mix by gaining access to affordable and reliable supply.”