Exxon Mobil reaches a preliminary agreement to supply liquefied natural gas (LNG) to South Africa, according to reports citing people familiar with the matter. The LNG is intended to support South Africa’s electricity and industrial needs as the country aims to reduce reliance on coal. The gas would be imported through the proposed Zululand LNG terminal in Richards Bay, where state power utility Eskom is expected to receive the fuel.
The reports describe the arrangement as preliminary, with further steps required before delivery terms and volumes are finalized. The proposed LNG supply is framed as a way to bolster South Africa’s coal-reliant power grid by providing an additional source of cleaner-burning fuel for electricity generation. While outlets vary slightly in wording, they broadly agree that the deal involves Exxon as the LNG supplier, a first LNG import terminal at Richards Bay’s Zululand site, and the use of imported gas to help diversify the country’s energy supply.
Overall, the coverage focuses on the commercial groundwork for LNG imports and the role of the terminal and Eskom in bringing the fuel into South Africa’s energy system.
