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Update: Exxon Mobil to Supply LNG to South Africa's Planned Gas Import Terminal

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(Updates with confirmation of deal by Zululand Energy Terminal)

The Zululand Energy Terminal in South Africa has signed a Heads of Agreement to buy liquefied natural gas from ExxonMobil South Africa LNG (XOM), ZET said in a statement on Wednesday, confirming an earlier Bloomberg report of such a deal.

The forthcoming LNG terminal at Richards Bay will become a key entry point for LNG imports to the country and support its transition to a more secure and diversified energy mix, the statement said.

Bloomberg noted that the gas would be used by state utility Eskom holdings at a planned 3 gigawatt gas-fired power plant as the country seeks to move away from coal, currently used to produce 80% of its electricity.

ZET noted that South Africa is headed towards a significant shortage of gas by 2030 as domestic resources decline, presenting risks for power generation, industry and economic

growth.

Neither the statement nor the Bloomberg article, based on sources with knowledge of the plans, mentioned an agreed volume of supply.

The Bloomberg article noted that the deal advances ExxonMobil's goal of doubling its LNG supply to above 40 million tons a year by 2030.

ZET said the terminal was being developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines and will be South Africa's first LNG import facility, with storage, regasification and distribution all made possible.

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