Exxon Mobil to Supply LNG to South Africa for Power Grid Support

Exxon Mobil Corp. has signed a preliminary agreement to supply liquefied natural gas (LNG) to South Africa, aiming to bolster the nation's coal-reliant power grid and support industrial growth.

Key points

• The gas will be imported through the proposed Zululand Energy Terminal in Richards Bay.
• The fuel is intended for a planned 3,000-megawatt power plant that has not yet been constructed.
• South Africa currently relies on coal for approximately 80% of its power generation.
• The project is expected to help address the country's ongoing electricity supply shortages and blackouts.

Why it matters

This deal represents a significant step in South Africa's efforts to diversify its energy mix and reduce its heavy dependence on coal-fired power.