What is the primary purpose of Exxon's preliminary LNG deal with South Africa?

The primary purpose of Exxon's preliminary LNG deal with South Africa is to supply liquefied natural gas to Eskom Holdings SOC Ltd. for use at a planned 3,000-megawatt power plant near the proposed Zululand LNG terminal in Richards Bay, enabling South Africa to bolster its coal-reliant power grid, improve electricity reliability amid chronic blackouts, and reduce emissions by transitioning away from coal—which accounts for about 80% of the country’s power generation.

Why does Eskom describe natural gas as a 'bridge fuel', and what challenge does South Africa face in deploying it?

Eskom describes natural gas as a 'bridge fuel' because it provides baseload power to support the integration of renewables into the grid when intermittent sources like wind and solar are unavailable; however, South Africa faces two major deployment challenges—minimal domestic natural gas production and significant delays in procuring gas turbines from suppliers such as Siemens AG and General Electric Co.—which threaten to postpone its plan to shut down about 20% of its coal-fired electricity generation capacity by 2030.

Exxon to Supply LNG to Help South Africa Reduce Reliance on Coal

Jun 16, 2026

Exxon Mobil struck a preliminary deal to supply LNG to South Africa's Eskom, aiming to reduce coal reliance and bolster the power grid. This aligns with Exxon's goal to double LNG supplies by 2030.

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