Zululand Energy Terminal invites EPC expressions of interest

Phase 1 of the project will use a 170,000-cu m floating storage unit attached to 3 million tpy of onshore regasification capacity. Phase 2 will add 220,000-cu m of onshore storage and 4.5 million tpy of regasification.

Key Highlights

  • ZET aims to develop South Africa’s first LNG terminal with a phased approach, starting with floating storage and expanding to onshore facilities.
  • ExxonMobil has signed a preliminary LNG supply deal, strengthening the project’s prospects.
  • The project is part of South Africa’s broader gas-to-power strategy, including a planned 3-Gw power plant near the terminal.

The proposed 7.5-million tonne/year (tpy) Zululand Energy Terminal (ZET) at the Port of Richards Bay, South Africa, has invited expressions of interest (EOI) from engineering, procurement and construction (EPC) contractors for development of planned LNG regasification infrastructure. Imported natural gas is expected to supply both industry and power generation.

Phase 1 of the project will use a 170,000-cu m floating storage unit attached to 3 million tpy of onshore regasification capacity. Phase 2 will add 220,000 cu m of onshore storage (potentially replacing the FSU) and 4.5 million tpy of regasification. 

ZET hopes to complete detailed engineering during 2027 to reach final investment decision in 2028 and start operations in 2030. Reuters reported last week that ExxonMobil Corp. had signed a preliminary deal to supply LNG to ZET.

Developed as a joint between Vopak Terminal Durban and Transnet Pipelines, ZET project is expected to be South Africa’s first LNG terminal. The consortium will design, develop, construct, finance, operate, and maintain the terminal in the South Dunes Precinct at the Port of Richards Bay over a 25-year concession.

EPC execution will be subject to ZET's localization and economic development objectives. Successful contractors will be expected to support local supplier participation, skills development, and the use of local labor. Qualifying parties will be included in the project’s vendor database and may be shortlisted for subsequent phases as potential preferred contractors or subcontractors.

The EOI submission window closes July 9, 2026. Interested contractors are invited to access the full EOI documentation here.

South African utility Eskom and ZET earlier this month signed a head of agreement (HOA) establishing the framework for a long-term strategic partnership to support South Africa’s gas-to-power program, underpinning a planned 3-Gw power plant near the terminal in KwaZulu-Natal.

Vopak Terminal Durban is owned by Royal Vopak and Reatile Group Proprietary Ltd. Transnet Pipelines is a division of Transnet SOC Ltd.

About the Author

Christopher E. Smith

Editor in Chief

Chris joined Oil & Gas Journal in 2005 as Pipeline Editor, having already worked for more than a decade in a variety of oil and gas industry analysis and reporting roles. He became editor-in-chief in 2019 and head of content in 2025.

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