A spokesperson for global commodity trader Vitol said it is backing a consortium planning to build a $3bn gas-fired power station and liquefied natural gas (LNG) import facility at South Africa's east coast, Durban port.
Drone view of Durban harbour, one of South Africa's busiest ports in Durban. Image credit: Reuters/Shiraaz Mohamed/File Photo
South Africa sees gas as crucial for its efforts to move away from coal-fired power plants, which supply most of the electricity to Africa's most industrialised economy, while Vitol wants a foothold in a market targeting 16 gigawatts of new gas generation by 2039.
The Vitol spokesperson told Reuters the project consortium includes Saudi Arabia's ACWA Power, Vitol unit Vivo Energy, which merged with Engen in 2024, as well as its terminal operator VTTI.
ACWA Power, already a major developer and investor in solar and hybrid power projects in South Africa, did not immediately respond to a request for comment.
The project, which has not been previously reported, received Strategic Integrated Projects status from the state in September, government and Vivo Energy officials said. This allows projects to be fast-tracked by reducing bureaucratic hurdles such as licensing procedures, for instance.
In a document sent to South African lawmakers and seen by Reuters, Vivo Energy and Engen South Africa said they were "advancing the development and investment into a 1,000 (to) 1,800 MW CCGT power generation plant with associated LNG importation infrastructure".
As part of their Durban marine terminal master plan, 20 hectares of land have been reserved for the project, the document showed, but gave no indication of timelines, potential cost or volume of gas needed.
"The estimated cost is circa $3bn. (About) timing, it is not possible to say at this stage.
"We shall provide updates as and when we are in a position to do so," the Vitol spokesperson said, adding it was too early to determine where the LNG cargoes would be sourced from.
A source with knowledge of the project said, besides power generation, the project planned to deliver "regasified LNG distribution through the Lilly gas pipeline, which links Secunda to Durban, LNG trucking to off-grid industrial and mining operations as well as LNG bunkering for shipping".
