ExxonMobil Targets South Africa with Richards Bay LNG Deal

The project, a joint venture between Vopak Terminal Durban and Transnet Pipelines, aims to provide the infrastructure necessary for the storage, regasification, and distribution of LNG. This development is intended to bridge the gap as South Africa pivots away from its heavy reliance on coal-fired power. Current gas imports via pipeline from Mozambique are insufficient to meet long-term demand, with experts warning of a significant supply shortfall by 2030 as Pande-Temane fields decline.

Andrew Barry, chairman of ExxonMobil LNG Market Development, noted the company’s intent to capitalize on the expanding global market by supporting South Africa’s energy security. The initiative serves as a critical hedge against the projected "gas cliff" that threatens industrial output and power generation. ExxonMobil views the region as a high-priority market for long-term sales, aiming to establish a foothold as the country restructures its energy mix.