Name of the Project
ZET liquefied natural gas (LNG) import terminal project.

Location
The precinct at the Port of Richards Bay, in the City of uMhlathuze, KwaZulu-Natal, South Africa.

The associated gas transmission pipeline will extend for about 25 km from the Richards Bay Industrial Development Zone gas hub to the existing Lilly gas pipeline, near Empangeni.

Project Owner/s
LNG infrastructure developer and terminal operator Zululand Energy Terminal (ZET), a joint venture between Vopak Terminal Durban and Transnet Pipelines, an operating division of State-owned logistics company Transnet.

Vopak Terminal Durban is 70%-owned by Netherlands-based energy infrastructure company Royal Vopak and 30%-owned by South African black-owned investment holding company Reatile Group.

Project Description
The project entails the development, construction, financing, operation and maintenance of an open-access LNG import, storage and regasification terminal.

The terminal will provide LNG receiving, storage, regasification, marine-bunkering, vessel-reloading, truck-loading and gas-transmission services for power generation and industrial customers.

The project is planned to be developed in two phases.

Phase 1 will include a floating storage unit (FSU) with capacity of at least 170 000 m³ and an onshore regasification system with an indicative capacity of three-million tonnes a year, equivalent to about 400-million standard cubic feet a day.

Phase 2 will include an onshore LNG storage tank with an indicative capacity of 220 000 m³, potentially replacing the FSU. Additional regasification infrastructure will increase the terminal’s total capacity to about 4.5-million tonnes a year, or about 600-million standard cubic feet a day.

Marine infrastructure will be developed to accommodate the FSU. Other infrastructure will include jetty-to-shore cryogenic pipelines, an onshore storage and regasification facility, a seawater abstraction and discharge system, a gas distribution hub, truck-loading facilities and supporting bulk services.

A 24-inch-diameter natural gas transmission pipeline, designed to operate at 80 bar, will connect the terminal and gas hub with the Lilly pipeline. The connection will allow for regasified LNG to be distributed to inland industrial and power-generation customers.

The pipeline is expected to be buried between 1 m and 1.5 m below ground and will include isolation valves, inspection and cleaning systems, as well as high-integrity overpressure protection infrastructure.

Terminal customers will secure their own LNG supplies and enter into long-term terminal-use agreements with ZET.

Potential Job Creation
Not disclosed.

Capital Expenditure
Not disclosed.

Planned Start/End Date
A final investment decision is targeted for 2028.

The current planning basis is for Phase 1 to enter commercial operation in 2030.

The connection to the Lilly pipeline is planned to be operational at the same time as the terminal, with completion targeted for the fourth quarter of 2030.

Phase 2 commercial operation could also occur as early as the fourth quarter of 2030, depending on customer requirements and the final investment decision.

The terminal will be developed and operated under a 25-year concession awarded by Transnet National Ports Authority.

Latest Developments
ZET and ExxonMobil South Africa LNG, an affiliate of ExxonMobil, signed a heads of agreement on June 17, 2026, to advance the project.

The agreement signals international market interest in supplying LNG to South Africa and supports the continued development of the infrastructure needed to establish a new gas import platform.

Separately, Eskom and ZET entered into a heads of agreement on June 5, 2026, establishing a framework for a long-term strategic partnership.

Under the agreement, Eskom will become a foundation customer of the terminal. Its participation is expected to support the commercial development of the terminal and underpin Eskom’s proposed 3 000 MW Richards Bay gas-to-power programme.

The parties plan to progress the required regulatory approvals, commercial structure and long-term contracting arrangements to conclude a terminal-use agreement.

ZET is working towards financial close and has started a phased process to select one or more engineering, procurement and construction contractors. The process comprises an expression-of-interest stage, followed by requests for information and proposals.

Environmental approval processes are also under way for the terminal and the associated connection to the Lilly pipeline. Applications include environmental authorisation, an atmospheric emissions licence, a water-use licence, a coastal-waters discharge permit and a dumping-at-sea permit.

Key Contracts, Suppliers and Consultants
Coastal & Environmental Services (environmental assessment practitioner for the terminal and associated gas transmission pipeline).

Contact Details for Project Information
ZET, tel +27 85 555 7459 or email info@zlet.co.za.