en.Wedoany.com Reported - Vopak, Transnet, and South Africa's state-owned power utility Eskom signed an intent agreement on Friday, establishing a framework for a long-term strategic partnership to support the country's gas-fired power generation projects. In a joint statement, the companies disclosed that Eskom will obtain foundational customer status at the proposed Zululand Energy Terminal. The terminal will provide open access to liquefied natural gas import, storage, and regasification infrastructure, supporting Eskom's planned 3,000 MW gas-fired power generation project.
The statement noted that both Eskom and the Zululand Energy Terminal will advance necessary regulatory approvals, long-term commercial contract methodologies and structures, and the infrastructure development required for the project. The partners stated that this partnership is a significant step in advancing South Africa's natural gas infrastructure ecosystem, supporting national efforts to diversify energy supply, enhance energy security, and drive economic growth.
Eskom's Richards Bay 3,000 MW gas-fired power generation project will be built and operated in the Richards Bay Industrial Development Zone in KwaZulu-Natal Province. The project includes importing and using regasified LNG as the primary fuel source, with a plant lifecycle expected to be 25 years, primarily operating as a mid-load power plant. The project will be developed through a private sector participation model, leveraging strategic partners, project financing, and long-term power offtake arrangements. The downstream power plant represents a large-scale capital investment that will attract international capital and accelerate industrial development in Richards Bay.
In February 2025, Transnet National Ports Authority signed a 25-year terminal operating agreement with a joint venture comprising Vopak and Transnet Pipelines for South Africa's first LNG import terminal. Both TNPA and Transnet Pipelines are subsidiaries of Transnet, the country's railway, port, and pipeline company. TNPA is developing an LNG import terminal at the Port of Ngqura, while Vopak is developing an LNG import project through its 70%-owned joint venture, Vopak Terminal Durban. The partners plan to develop the project in two phases. Phase one includes a floating storage unit with a capacity of at least 170,000 cubic meters and an onshore regasification system with an indicative capacity of 3 million tons per year (approximately 400 million standard cubic feet per day), along with optional truck loading facilities. Vopak and Transnet Pipelines plan to make a final investment decision on this phase by 2028. Phase two includes an onshore LNG storage tank with a capacity of up to 220,000 cubic meters, potentially replacing the FSU, and adding additional regasification capacity to bring total capacity to 4.5 million tons per year. In March this year, ZET announced it would issue a request for expressions of interest to assess the interest and capability of EPC contractors to participate in project preparation and execution. The selection of EPC contractors will be conducted in a phased manner, starting with this expression of interest, followed by a request for information, and finally entering the request for quotation phase.
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