en.Wedoany.com Reported - South Africa's national power utility, Eskom, and the Zululand Energy Terminal (ZET) have reaffirmed their commitment to jointly advance the necessary regulatory approvals, long-term commercial contract models and structural design, as well as infrastructure development required for the project, ensuring its successful implementation. ZET is a joint venture between Royal Vopak's Vopak Terminal Durban, South Africa's Reatile Group Proprietary Ltd, and Transnet Pipelines. It has been granted a concession by Transnet National Ports Authority (TNPA) for the development, construction, operation, and maintenance of a liquefied natural gas (LNG) terminal.

This cooperation marks a significant step in South Africa's natural gas infrastructure ecosystem, helping the country diversify its energy supply, enhance energy security, and promote economic growth. Supported by South Africa's Ministry of Electricity and Energy, the Ministry of Transport, and Transnet, the project will facilitate the development of gas-fired power generation, providing the flexible and dispatchable capacity needed to complement renewable energy, maintain grid stability, and support the nation's long-term energy transition.

Eskom's Richards Bay 3,000 MW gas-fired power project will be constructed and operated in the Richards Bay Industrial Development Zone (RBIDZ) in KwaZulu-Natal Province. The project plans to import and consume regasified LNG as the primary fuel source for the power plant, which has an expected lifecycle of 25 years and will primarily operate as a mid-load plant. Designated as a strategic integrated project under the Infrastructure Development Act (No. 23 of 2014) and the Integrated Resource Plan 2025 (IRP 2025), the project will be developed using a private sector participation (PSP) model, leveraging strategic partners, project financing, and long-term power purchase arrangements. The downstream power plant represents a significant capital investment, attracting international capital and accelerating industrial development in Richards Bay.

Eskom Group Chief Executive Dan Marokane stated that natural gas is being used as a transition fuel to support the shift to a low-carbon energy system. These gas-fired plants are designed to complement intermittent renewable energy sources such as solar and wind, ensuring stable power supply around the clock, while clean energy technologies are being developed and integrated into the grid. Securing "anchor customer" status with the Zululand Energy Terminal provides a critical impetus for its 3,000 MW gas project. They will adopt a long-term contracting approach to minimize volatility and support system reliability, aligning with IRP 2025 objectives.

Oliver Naidu, Director and Project Lead of the Zululand Energy Terminal, stated that this signing marks a significant milestone for ZET in advancing support for South Africa's energy future. Eskom's role as one of the anchor customers demonstrates growing confidence in LNG as a driver of energy security, grid stability, and industrial growth. This agreement strengthens the terminal's commercial foundation, and all parties look forward to building a long-term partnership as they move toward terminal use agreements, financial close, and the delivery of South Africa's first LNG import terminal.

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