What is the significance of Eskom's new LNG agreement with the Zululand Energy Terminal for its Richards Bay power project?

The LNG agreement grants Eskom open access to LNG import, storage, and regasification infrastructure at South Africa's first LNG import terminal—located in Richards Bay port—enabling its planned 3,000 MW gas-fired power plant to use regasified LNG as its primary fuel source over a 25-year lifecycle.

Why has Eskom's 3,000 MW gas-fired Richards Bay project been delayed, and what role does the Zululand Energy Terminal play in advancing it?

The project has been stalled by a court order citing inadequate public consultation; however, the newly signed long-term LNG agreement with the Zululand Energy Terminal—a joint venture between Vopak, Reatile, and Transnet Pipelines—provides the critical fuel supply infrastructure needed to move the project forward, as the terminal was awarded the concession to build and operate South Africa's first LNG import facility on the east coast in 2024.

Eskom signs LNG deal to supply its planned 3,000 MW gas-fired Richards Bay project

Jun 5, 2026

Eskom signed a long-term LNG agreement with Zululand Energy Terminal to fuel its planned 3,000 MW gas-fired power plant in Richards Bay. This deal secures infrastructure access as part of South Africa's transition toward gas power.

reuters

2026-06-05

Eskom signs LNG deal to supply its planned 3,000 MW gas-fired Richards Bay project

Eskom signs LNG deal to supply its planned 3,000 MW gas-fired Richards Bay project

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