Eskom and Zuzuland Energy Terminal (ZET) have signed a Heads of Agreement (HOA) to confirm a long-term strategic partnership to support South Africa’s gas-to-power programme.
As part of the agreement, Eskom will have foundation customer status at the proposed Zuzuland Energy Terminal, underpinning its planned 3,000mw gas-to-power programme. The terminal will provide open access to LNG import, storage and regasification infrastructure. The HOA reaffirms the companies’ commitment to progressing the necessary regulatory approvals, long-term commercial contracting approach and structuring, and infrastructure development needed for the terminal project.
ZET is a joint venture between Vopak Terminal Durban and Reatile Group Proprietary. Transnet Pipelines was awarded a concession by the Transnet National Ports Authority to develop, construct, operate and maintain the LNG terminal.
Dan Marokane, Eskom’s group chief executive, comments: ‘Gas is being 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. 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. Securing ‘foundation customer’ status at the Zululand Energy Terminal provides a critical enabler for our 3,000mw gas programme, with the intention of a long-term contracting approach to minimise volatility and support system reliability while aligning with the IRP 2025 objectives.’
‘Today’s signing marks a significant milestone for ZET as we advance our role in supporting 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. 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,’ says Zululand Energy Terminal director and project owner, Oliver Naidu.
