Royal Vopak, the Dutch global energy storage company, has joined with US major ExxonMobil, a leading LNG exporter, to study the liquefied natural gas import possibilities for South Africa to become an LNG importer to boost gas-fired power and clean energy availability.
Vopak and ExxonMobil have signed a memorandum of understanding on studying the development of a South African regasification facility.
So far no third-parties are involved in the process to make South African an LNG importing nation in the next couple of years.
“The two companies will evaluate what infrastructure South Africa needs to access LNG. A shift to this resource would allow the country to take advantage of a reliable cost-effective fuel source, while also reducing emissions,” said a joint statement.
Kees van Seventer, President of Vopak LNG, said teaming up with ExxonMobil would allow the development of resilient and efficient LNG infrastructure for South Africa.
“With our presence of nearly 25 years in South Africa, we are committed to enhance Vopak's terminal network in the country with sustainable infrastructure solutions,” added Seventer.
Vopak is an experienced LNG terminal operator and has a 50 percent stake in the Dutch Gate LNG facility in Rotterdam with 540,000 cubic metres capacity of storage.
It additionally has a 60 percent shareholding in the Mexican LNG terminal at Altamira in the Gulf of Mexico with 300,000 of tank capacity.
ExxonMobil is a global partner of Qatar Petroleum and has volumes of LNG for export in the three leading supply nations, Australia, Qatar and the United States.
“ExxonMobil is excited to work with Vopak to evaluate innovative approaches to bring competitive LNG projects to South Africa,” said ExxonMobil LNG Market Development President Irtiza Sayyed.
Affiliates of ExxonMobil and Vopak signed the accord to work together on a feasibility study to assess the commercial, technical and regulatory aspects of an LNG terminal in South Africa.
ExxonMobil and Vopak plan to evaluate the infrastructure critical for South Africa’s needs and 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,” they added.
