FINWIRES · TerminalLIVE
FINWIRES

Eskom, ZET Sign Agreement Backing South Africa's Gas-to-Power Plans

By

Eskom secured foundation customer status at the proposed Zululand Energy Terminal to support its planned 3,000-megawatt gas-to-power program, the companies announced Friday.

A newly signed Heads of Agreement establishes a framework for long-term cooperation between Eskom and Zululand Energy Terminal on liquefied natural gas import, storage, and regasification infrastructure, according to the statement.

Zululand Energy Terminal, a joint venture involving Vopak Terminal Durban, Reatile Group, and Transnet Pipelines, holds a concession from Transnet National Ports Authority to develop and operate the LNG facility.

The partnership aims to expand South Africa's gas infrastructure network, strengthen energy security, and support economic growth while providing flexible generation capacity to complement renewable energy sources, the statement said.

Eskom plans to build and operate its 3,000-megawatt Richards Bay gas-to-power project in the Richards Bay Industrial Development Zone in KwaZulu-Natal, using regasified LNG as the plant's primary fuel.

The project is expected to operate for 25 years as a mid-merit power plant and holds strategic integrated project status under the Infrastructure Development Act 23 of 2014 and the Integrated Resource Plan 2025.

Eskom Group Chief Executive Dan Marokane said securing foundation customer status at the terminal provides a key enabler for the company's 3,000-megawatt gas program, which is intended to support grid reliability and renewable energy integration.

Zululand Energy Terminal Director Oliver Naidu said Eskom's participation strengthens the terminal's commercial foundation and supports plans to reach a terminal use agreement, achieve financial close and deliver South Africa's first LNG import terminal.

South Africa's Integrated Resource Plan 2025 targets 6,000 MW of gas-fired capacity by 2030, including 3,000 MW from the gas independent power producer program and 3,000 MW from Eskom, while also using gas to improve grid stability, reduce diesel consumption and address the country's anticipated gas supply shortfall.

Related Articles

Oil & Energy

US Oil Update: Crude Settles Lower as Markets Weigh Iran Peace Talks Progress

Crude oil futures fell in after-hours trading on Thursday as markets weighed the prospects for an end to the Middle East conflict that could reopen the Strait of Hormuz, following reports about a ceasefire deal between Israel and Lebanon.Front-month West Texas Intermediate crude futures tumbled by 3.06% to $93.12 per barrel, while Brent futures were down 2.59% to $95.28/bbl.The ceasefire between Israel and Lebanon announced on Wednesday could meet one of Tehran's key bargaining conditions, easing the way to a pact between the US and Iran.ING strategists said that inventories are likely to continue to tighten into Q3, leaving upside risks to prices.US crude oil inventories decreased by 8 million barrels to 433.7 mmbbls in the week ended May 29, the Energy Information Administration said in its weekly report on Wednesday. Crude inventories are now about 3% below the five-year average for this time of year, the EIA said.The decline exceeds Macquarie's forecast of a 6.2-mmbbl draw for the week ending May 29.Iran has indicated that any wider agreement with the US would partly depend on an end to hostilities between Israel and the Iran-backed Hezbollah movement. Israel and Lebanon's agreement to implement a ceasefire on Wednesday would satisfy one of Iran's key conditions, potentially easing the path toward a broader understanding between Tehran and Washington.However, Hezbollah rejected a new ceasefire in Lebanon on Thursday, and Israel said it would not withdraw its troops from the country.Derek Halpenny, head of research at MUFG, said if the ceasefire between Israel and Hezbollah can hold over the coming days, it increases the prospect of some progress between the US and Iran.On Thursday, Iran's Islamic Revolutionary Guard reportedly said peace in the region would not be possible unless Israel withdrew from the occupied areas in Lebanon.The IRGC said in a statement that its main condition for accepting a ceasefire in the region is a ceasefire on all fronts, including Lebanon.Meanwhile, the Strait of Hormuz remains the oil market's central focus, with supply disruptions and ongoing closures pushing energy prices to record highs.Saxo Bank strategists said traffic through the Hormuz, a key chokepoint that normally handles about one-fifth of global oil and LNG shipments, has recovered modestly but remains well below pre-conflict levels.The US Central Command said on Thursday that US forces redirected 127 Iran-linked commercial vessels.

Oil & Energy

Trump Rolls Out $700 Million Coal Investment Package, Highlights Iran Deal Priorities

US President Donald Trump unveiled a package of coal-related initiatives Thursday that he said will support power generation, mining activity and energy infrastructure across the US."As a result of the $700 million investment that I'm announcing today, we will protect 14 coal plants and 42 coal mines... build two new coal plants and one new massive export terminal," Trump said.Trump said the initiatives will support more than 14,000 jobs and reduce electricity costs by about $50 billion.Trump said his administration is invoking the Defense Production Act to preserve 13 coal plants across West Virginia, Kentucky, North Carolina, Tennessee, Arkansas, Oklahoma, North Dakota and Wisconsin.The administration is also redirecting $200 million previously allocated to clean-energy programs to support a coal facility in Maryland and help build new coal-fired plants in Alaska and West Virginia, Trump said.Trump said his administration has approved 76 coal mining projects and added that "last year we prevented 17 gigawatts of coal-fired electricity from going offline."On Iran, Trump highlighted nuclear restrictions and shipping security as key elements of a potential agreement with Tehran."The main parts of the deal is that they can't have a nuclear weapon, the strait will open immediately... and we've largely swept the mines," Trump said.Trump also said he would be willing to meet Iran's Supreme Leader if negotiations produce an agreement."I'd be honored to meet him," Trump said. "If we make a deal, it's possible I would meet him."Discussing Lebanon, Trump said recent conversations connected to the broader Iran situation have produced progress and could help bring stability to the country."It would be really nice if Lebanon could have some peace," Trump said, adding that he discussed the issue with Israeli Prime Minister Benjamin Netanyahu and Hezbollah representatives.Energy Secretary Chris Wright, who was also present, said higher Venezuelan oil exports have increased global crude supplies and helped limit pressure on energy markets."Venezuelan oil exports today are three times higher than they were right before we went in," Wright said.

Oil & Energy

US Open to Country-Specific Exemptions for Russian Oil, Bessent Says

US Treasury Secretary Scott Bessent said Thursday that any future waivers allowing countries to buy Russian oil would likely be granted on a case-by-case basis rather than through broad exemptions.Bessent made the remarks during a testimony before the House Ways and Means Committee."My strong inclination is that if there are further waivers, that they will be country-specific and not generalized," Bessent said, responding to questions from Representative Brian Fitzpatrick, a Pennsylvania Republican.Secretary Bessent defended the Treasury's use of targeted exemptions for Russian seaborne oil, arguing they generated limited additional revenue for Russia."The Russian Federation has seen very little incremental revenue because of the waivers. Their oil was always going to China, and now the oil can go to our allies," Bessent said.Fitzpatrick pressed Bessent on the Treasury Department's successive extensions of waivers exempting Russian seaborne oil from certain US sanctions imposed following the invasion of Ukraine.Fitzpatrick said lawmakers from across the aisle had sought to ensure that Russia's war in Ukraine was not rewarded through sanctions relief. He pointed to legislation introduced last year that would impose tariffs of up to 500% on Russian imports and on countries that provide economic support to Russia's war effort."You have to step back and think, are you willing to put a 500% tariff on China?" Bessent said, adding that that he had been told by many that "tariffs are inflationary.""I don't believe they are. But a 500% tariff is an embargo," Bessent said.Secretary Bessent said several economically vulnerable countries had requested an extension of the original waiver during meetings of the International Monetary Fund and World Bank earlier in 2026.Following the hearing, Fitzpatrick said he remained concerned about the continued use of waivers and planned to seek further clarification from Treasury officials.