Thokozile Mnguni
The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, says the collaboration between Eskom and Zululand Energy Terminal (ZET) marks a key step in strengthening South Africa’s gas infrastructure and advancing the energy transition.
Ramokgopa made the remarks on Friday while presiding over the signing ceremony formalising the Heads of Agreement (HOA) between the two entities. He said the deal is a significant milestone in unlocking liquefied natural gas (LNG) infrastructure and supporting the Richards Bay Gas-to-Power Project.
“This agreement represents a significant milestone in South Africa’s energy transition journey, establishing a partnership necessary for unlocking Liquefied Natural Gas infrastructure and enabling the development of the Richards Bay Gas-to-Power Project,” Ramokgopa said.
He said the partnership will help diversify the country’s energy mix and improve system reliability as renewable energy capacity increases.
Eskom Group Chief Executive Dan Marokane said the utility is positioning itself as a national import facility for natural gas, in line with the Integrated Resource Plan targeting about 6 000 MW of gas-to-power capacity.
Marokane said Eskom will act as a foundational customer for LNG infrastructure and gas importation.
“We are undertaking this programme as part of supporting the growth in renewable energy within our energy mix. It is important to highlight that the capacity of this special power is critical in ensuring grid stability in a space where renewable energy sources’ contributions start increasing,” Marokane said.
He added that the parties are working towards a 2030 delivery timeline.
“We are quite excited that the partnership with Zululand Energy Terminal has really reached this point in time. We are hopeful that all efforts from our side and both from our partners will help us move towards the 2030 timeline of ensuring that the power plant is ready, given the anticipated increase in the contribution of the renewables business,” he said.
Zululand Energy Terminal Director and Project Owner Oliver Naidu said the agreement marks a key step in developing South Africa’s first LNG import terminal.
“This is a strategic partnership import terminal situated along the east coast in Richards Bay port. Our role as terminal operator is to provide the infrastructure platform that will enable LNG to be received, stored, regasified and distributed to power generation customers and industrial users across South Africa,” Naidu said.
The partnership is expected to strengthen long-term energy security, improve fuel diversification and support grid stability as South Africa transitions to a lower-carbon energy system.