June 17, 2026 [Reuters]- Exxon Mobil has signed a preliminary deal to supply liquefied natural gas to Zululand Energy ​Terminal, which will be South Africa’s first LNG import facility ‌once built, the companies said on Wednesday.

• The planned terminal is part of South Africa’s pivot away from coal-fired power generation, which accounts for the bulk of its ​electricity supply.
• Reuters reported in March that the Zululand Energy Terminal (ZET) hoped ​to strike a deal with Exxon Mobil on LNG supply.
• Exxon ⁠Mobil’s participation helps reinforce the importance of Richards Bay port, where ​ZET is being built on South Africa’s east coast, as an entry ​point for LNG and supports plans to unlock a “competitive and sustainable gas market”, said Oliver Naidu, ZET director.
• Exxon Mobil has identified South Africa as a priority market and ​wants to grow its LNG supply to more than 40 million ​metric tons per annum (mtpa) by 2030.
• “This agreement reflects Exxon Mobil’s global LNG experience and ‌our ⁠commitment to support South Africa’s energy security with reliable supply,” said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc.
• Earlier this month, South African state power utility Eskom signed a long-term LNG agreement with ZET that ​will support a ​planned 3,000 ⁠megawatt gas-to-power plant project.
• Phase 1 of the terminal includes a floating storage unit and an onshore regasification system ​with capacity of around 3 mtpa, or 400 million ​standard cubic ⁠feet of gas a day.
• Phase 2, which will bring the project’s total expected cost to $1 billion, will introduce extra regasification capacity and storage onshore, ⁠boosting ​total volumes to 4.5 mtpa, or about ​600 million standard cubic feet a day, Naidu said.