Eskom and Zululand Energy Terminal (ZET) have signed an agreement to work together in support of South Africa’s gas-to-power programmeEskom will assume ‘foundation customer’ status at the proposed Zululand Energy Terminal that will provide open access to liquefied natural gas (LNG) import, storage and regasification infrastructure.This will underpin the utility’s planned 3,000 MW gas-to-power scheme.Eskom’s Richards Bay 3,000MW gas-to-power project is to be constructed and operated in the Richards Bay Industrial Development Zone (RBIDZ), in KwaZulu-Natal.Its group chief executive, Dan Marokane, said gas will be used as a “bridge fuel” to support the transition to a low-carbon energy system.“These gas plants are designed to complement intermittent renewable sources like solar and wind, ensuring reliable 24/7 power, while clean energy technologies are being developed and introduced onto the grid,” he said.“The availability of dispatchable power is at the very heart of the energy transition and industry cannot operate without it as it forms the backbone for renewable energy integration into the grid.”Both Eskom and ZET reaffirmed their commitment to progressing the necessary regulatory approvals, long-term commercial contracting approach and structuring, and infrastructure development required to bring the project to fruition.ZET, a joint venture between Vopak Terminal Durban, owned by Royal Vopak, with South Africa’s Reatile Group Proprietary Limited and Transnet Pipelines, was awarded a concession by Transnet National Ports Authority to develop, construct, operate and maintain the LNG terminal.The Eskom Richards Bay project envisages the import and consumption of regasified LNG as the primary fuel source of the power plant.ZET director, Oliver Naidu, said the deal with Eskom marked a significant milestone for the project and for South Africa’s energy future.“As one of our anchor customers, Eskom’s participation demonstrates growing confidence in LNG as an enabler of energy security, grid stability and industrial growth,” he said.“This agreement strengthens the commercial foundation of the terminal, and we look forward to building a long-term partnership as we progress towards a Terminal Use Agreement, financial close and the delivery of South Africa’s first LNG import terminal.”Read more:
Eskom advances flagship gas-to-power project
Eskom keen on gas power (Image source: Adobe Stock)
