Updated
Updated · Bloomberg · Jun 16
Exxon Strikes Preliminary LNG Supply Deal With Eskom for Richards Bay Terminal
Updated
Updated · Bloomberg · Jun 16

Exxon Strikes Preliminary LNG Supply Deal With Eskom for Richards Bay Terminal

3 articles · Updated · Bloomberg · Jun 16

Summary

  • Exxon Mobil reached a preliminary agreement to supply liquefied natural gas to South Africa, with Eskom set to import the fuel through the proposed Zululand LNG terminal in Richards Bay.
  • The deal is aimed at helping South Africa cut reliance on coal while shoring up Eskom’s power system with an additional fuel source.
  • People familiar with the matter said the accord has not yet been officially announced, indicating the arrangement is still at an early stage.

Insights

As global conflicts spike LNG prices, is South Africa trading its coal crisis for a more expensive energy trap?
With renewables getting cheaper, why is South Africa betting billions on fossil fuel assets that could soon be obsolete?