The Dutch tank storage and terminal operator has postponed the final investment decision (FID) on South Africa's first liquefied natural gas terminal to 2028, according to a senior Vopak executive.
The company had planned to approve the project early this year. Still, a September court order halted power utility Eskom's plans to develop a 3,000-MW gas-fired plant in Richards Bay, slowing progress.
“We were waiting to see what was happening with Eskom, and we extended our pre-feed study,” said Oliver Naidoo, president of Vopak's local unit. reuters On the sidelines of the African Energy Indaba in Cape Town, referring to a preliminary design study.
He said the company now expects to be ready to make a final decision in the first quarter of 2028.
The two-phase project is estimated to cost approximately $1 billion.
Vopak was selected as part of a consortium with Transnet Pipelines to build and operate the Zululand Energy Terminal for 25 years at the Richards Bay port through 2024.
Naidu said he expected to sign preliminary agreements with Eskom and potentially US oil major ExxonMobil in the coming months for the use and delivery of LNG.
Exxon is one of the strong potential customers, he said.
Global LNG supplier ExxonMobil had previously identified South Africa as a top priority market.
The company did not immediately respond to a request for comment.
The Zululand Energy Terminal, located on South Africa's east coast, was initially expected to import two million tonnes per annum (mtpa) of LNG by 2027, to be expanded to five mtpa, Transnet National Ports Authority (TNPA) previously said.
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