Exxon Mobil has set its sights on South Africa, calling it a priority destination for liquefied natural gas projects, a senior executive announced.
The U.S. energy giant, already the world’s leading natural gas producer and exporter, hopes to strengthen its dominance through fresh global projects.
South Africa, meanwhile, is searching for new suppliers as gas imports from Mozambique begin to dwindle, raising fears over energy security.
Exxon Mobil’s vice president for LNG development, Shahrukh Mirza, said the company intends to build long-term supply partnerships within the country.
Achieving this ambition will require significant infrastructure, including LNG import facilities and joint ventures with South African industry players, Mirza emphasised.
Company studies estimate the nation will need six to seven gigawatts of gas-fired power to transition away from coal-heavy electricity generation.
Government officials say gas imports will complement South Africa’s investments in renewable energy, particularly wind and solar, amid mounting pressure to decarbonise.
In May, Pretoria floated a plan to purchase billions of dollars’ worth of U.S. LNG under a decade-long deal to boost trade.
However, trade talks faltered, and in August U.S. President Donald Trump slapped a 30 percent tariff on South African imports.
Exxon affiliates have also partnered with Dutch firm Royal Vopak in exploring a regasification terminal to handle LNG volumes at scale.
Last year, Vopak and state-owned Transnet Pipelines secured a 25-year mandate to develop and operate an LNG hub at Richards Bay.
“South Africa represents the beginning, but we expect demand to expand further, and Exxon intends to anchor itself firmly here,” Mirza said.
