HomeNewsEskom 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

6/5/2026

South African power utility Eskom signed a long-term liquefied natural gas agreement with the Zululand Energy Terminal that will support Eskom's planned 3,000-megawatt (MW) gas-to-power project, the two companies said on Friday.

  • Zululand Energy Terminal is South Africa's first LNG import terminal situated along the east coast in Richards Bay port.
  • As a result of the deal, Eskom will have open access to LNG import, storage, and regasification infrastructure.
  • Eskom's planned 3,000-MW gas-fired power plant has been stalled by a court order citing inadequate public consultation.
  • Zululand terminal, a joint venture between Dutch company Vopak, local energy firm Reatile and state-owned Transnet Pipelines, was awarded the concession to build and operate the terminal in 2024.
  • The planned power plant will use regasified LNG as the primary fuel source over its expected lifecycle of 25 years.
  • South Africa is pivoting towards gas as a transitional fuel and has set aside 6,000 MW for gas power as part of its energy mix by the turn of the decade.

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