Vopak pushes R18bn South African LNG terminal decision to 2028 amid energy uncertainty
DUTCH energy infrastructure firm Royal Vopak has postponed a key investment decision on South Africa’s first liquefied natural gas (LNG) import terminal, citing ongoing regulatory and market uncertainty. The company now expects to make a final investment decision in the first quarter of 2028, two years later than initially anticipated.
The delay follows setbacks in the country’s gas-to-power programme. A court ruling last year halted plans by state utility Eskom to develop a 3 000MW gas-fired power station at Richards Bay, dampening demand visibility for imported LNG and slowing associated infrastructure timelines.
Vopak was appointed in 2024, alongside Transnet Pipelines, to develop and operate the proposed Zululand Energy Terminal for a 25-year concession. The two-phase project is expected to cost about $1 billion (roughly R18 billion), with initial capacity of two million tonnes of LNG a year and potential expansion to five million tonnes.
The company is continuing discussions with potential offtakers, including global energy major ExxonMobil, as it reassesses market fundamentals.
The project remains central to South Africa’s plans to diversify its energy mix, improve security of supply and reduce reliance on coal-fired generation.
