Affiliates of U.S. energy major ExxonMobil and Dutch storage tank firm Royal Vopak will be working on a feasibility study to assess the commercial, technical and regulatory aspects of an LNG regasification terminal in South Africa.
Vopak said that the affiliates of the two companies signed a memorandum of understanding (MOU) to bring LNG into the country.
ExxonMobil and Vopak plan to evaluate the infrastructure critical for South Africa needed to take advantage of the benefits that LNG can bring to the country, including providing a reliable, cost-effective fuel source, as well as an option for reducing emissions.
These benefits can be achieved by repurposing older coal power plants, converting peaking power plants, and securing supply for South Africa’s industrial sector.
ExxonMobil LNG market development president Irtiza Sayyed said: “ ExxonMobil is excited to work with Vopak to evaluate innovative approaches to bring competitive LNG projects to South Africa.
“ As a gas industry leader with strategic access to LNG supplies around the world, ExxonMobil is well-positioned to supply cleaner, reliable energy to power South Africa in the future ”.
Kees van Seventer , president of Vopak LNG, added: “ Our collaboration with ExxonMobil will allow us to leverage our global expertise and experience to develop resilient and efficient LNG infrastructure for South Africa.
“ With our presence of nearly 25 years in South Africa, we are committed to enhancing Vopak’s terminal network in the country with sustainable infrastructure solutions ”.
It is worth noting that Vopak and ExxonMobil have successfully worked together for several decades across the energy sector.
According to Vopak, the combination of its experience as an LNG terminal developer and ExxonMobil’s expertise in LNG logistic solutions, as well as the future projects that would come from this study could help ensure the security of South Africa’s gas supply and could potentially improve air quality in the country.