Netherlands-headquartered tank storage and terminal operator Vopak’s local subsidiary, Vopak South Africa, together with Transnet Pipelines, on March 13 signed a memorandum of understanding (MoU) with the Richards Bay Industrial Development Zone (RBIDZ), committing to advance gas development in the province.
The MoU comes as Vopak South Africa and Transnet Pipelines finalise commercial agreements and contractor appointments ahead of a final investment decision on the Zululand Energy Terminal (ZET) at the Port of Richards Bay, which will mark South Africa’s first liquefied natural gas (LNG) import terminal.
 The partners signed the MoU on the sidelines of RBIDZ and the KwaZulu-Natal provincial government’s inaugural KZN Energy Indaba on March 12 and 13.
 Vopak South Africa and the RBIDZ both aim to improve energy security by supporting downstream gas industries and gas-to-power opportunities. South Africa consumes about 185 PJ/y of natural gas, of which nearly 90% is imported from the Pande-Temane gasfields in Mozambique. The resources from these gasfields are, however, depleting.   
Petrochemicals company Sasol last year confirmed that it will cease natural gas supply to the market by June 2028, which will lead to a supply shortfall for South Africa’s 300 large-scale industrial gas users and have detrimental impacts to the South African economy if alternatives are not pursued.
As an attractive solution to the pending gas cliff and South Africa’s energy security in general, ZET has been tasked to build and operate LNG import and regasification infrastructure at the Port of Richards Bay. ZET is a partnership between Vopak South Africa – through Vopak Terminal Durban – and Transnet Pipelines.
 
The MoU stipulates that ZET and the RBIDZ will establish a gas custody transfer station to enable the distribution of regasified LNG to transmission pipelines and industrial users.
 For Vopak South Africa president Oliver Naidu, collaboration between entities such as RBIDZ, Transnet and private companies can bolster a modern gas economy for KwaZulu-Natal and South Africa.
 “Our partnership with RBIDZ lays the foundation for an energy corridor that can unlock industrial growth, improve energy security and offer new opportunities for local businesses and communities,” he states.
 Meanwhile, a final investment decision (FID) on ZET is still pending following delays to the start of Eskom’s 3 000 MW gas-to-power project, in Richards Bay, owing to public consultation issues.
 Vopak South Africa deferred its FID on the LNG import terminal to the first quarter of 2028.
 
The Supreme Court of Appeal in September 2025 set aside Eskom’s environmental authorisation for the proposed combined cycle gas power plant project, with the court having ruled that Eskom did not adequately publish public participation notifications in isiZulu.
 Although the project now requires a new environmental authorisation process, Eskom says it remains committed to its strategic gas programme and that gas plays a critical role in South Africa’s energy future.
 “It acts as a backbone for renewable-energy integration owing to its flexibility and fast-response capability. As more renewables come online, dispatchable generation is needed to offset their variability, ensuring energy security and sustaining the gains of the Generation Recovery Plan.
 “At this stage, gas is the quickest and most effective solution for back-up and load-following,” says Eskom strategy deliver group executive” Alfred Seema.