Exxon Mobil backs South Africa’s first LNG import terminal

Exxon Mobil Corp., an American multinational oil and gas company, has moved to strengthen its position in Africa’s evolving energy landscape after signing a preliminary agreement to supply liquefied natural gas (LNG) to South Africa’s planned Zululand Energy Terminal (ZET), a project set to become the country’s first LNG import facility.

The agreement marks a major milestone for South Africa’s energy transition strategy as the nation seeks to reduce its dependence on coal-fired electricity generation and diversify its energy mix through cleaner-burning natural gas.

Zululand Energy Terminal targets strategic energy role

Located at the Port of Richards Bay on South Africa’s east coast, the Zululand Energy Terminal is designed to provide LNG receiving, storage and regasification services. 

The facility is expected to support a planned 3,000-megawatt gas-to-power project aimed at improving electricity reliability and addressing long-standing supply constraints.

The development follows a long-term LNG agreement recently signed between state-owned utility Eskom and ZET, creating a critical foundation for future gas-powered electricity generation.

“Exxon Mobil’s participation reinforces the strategic importance of Richards Bay as a gateway for LNG imports and supports the creation of a competitive and sustainable gas market,” said Oliver Naidu, Director of Zululand Energy Terminal.

Exxon Mobil expands LNG ambitions

For Exxon Mobil, the deal aligns with broader ambitions to expand its global LNG portfolio. The U.S. energy giant has identified South Africa as a priority growth market and is targeting LNG supply volumes exceeding 40 million metric tons annually by 2030.

Andrew Barry, Chairman of ExxonMobil LNG Market Development Inc., said the agreement demonstrates the company’s commitment to supporting South Africa’s energy security through reliable LNG supplies and global operational expertise.

Africa remains a strategic growth market

Exxon Mobil continues to view Africa as a key pillar of its long-term growth strategy. Although the company has exited some shallow-water assets in Nigeria, it remains heavily invested in deepwater exploration opportunities across West Africa.

The Richards Bay LNG project highlights growing investor confidence in African energy infrastructure as governments seek cleaner fuel alternatives, strengthen energy security and attract long-term capital.

Once completed, South Africa’s first LNG import terminal could emerge as a pivotal gateway for natural gas imports, helping reshape the country’s power sector while accelerating the broader African energy transition.