en.Wedoany.com Reported - South Africa's national power utility, Eskom, and the Zululand Energy Terminal (ZET) recently signed a cooperation intent agreement, establishing a long-term strategic partnership framework to support South Africa's gas power plan. Eskom will obtain "foundation customer" status at the proposed Zululand Energy Terminal, which will provide access to LNG import, storage, and regasification infrastructure, supporting Eskom's planned 3000 MW gas power project.
Under the agreement, both parties commit to jointly advancing necessary regulatory approvals, long-term commercial contract structures, and infrastructure development. ZET is a joint venture comprising Royal Vopak (Netherlands), South Africa's Reatile Group, and Transnet Pipelines, and has been granted a concession by Transnet National Ports Authority to develop, construct, operate, and maintain the LNG terminal. This partnership helps advance South Africa's gas power infrastructure, supporting energy supply diversification, enhancing energy security, and promoting economic growth.
Eskom's 3000 MW gas power project in Richards Bay will be located in the Richards Bay Industrial Development Zone in KwaZulu-Natal Province. The project plans to use regasified LNG as the primary fuel for the power plant, which has a design life of 25 years and will operate as a mid-merit power plant, developed through a private sector participation model. The project has been designated as a strategic integrated project under South Africa's Infrastructure Development Act and the Integrated Resource Plan 2025.
Eskom Group Chief Executive Dan Marokane stated that natural gas is serving as a transition fuel to support the shift to a low-carbon energy system, with dispatchable power supply being central to the energy transition. Zululand Energy Terminal Project Director Oliver Naidu noted that Eskom's participation demonstrates growing confidence in LNG as a driver of energy security, grid stability, and industrial growth, and that the agreement strengthens the terminal's commercial foundation.
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