Eskom signs preliminary gas deal with Exxon Mobil

[Hanno Labuschagne]

Eskom signs preliminary gas deal with Exxon Mobil

Exxon Mobil struck a preliminary deal to bring liquefied natural gas to South Africa, which will use the fuel to bolster its coal-reliant power grid, according to people familiar with the matter.

The agreement will enable state utility Eskom Holdings to import gas at the proposed Zululand LNG terminal in Richards Bay, an industrial city on the country’s east coast, said the people, who asked not to be identified because the accord hasn’t been officially announced.

[Bloomberg]

 

[Smiggles]

Surprised they didn't sign with Enron.

 

[Gordon_R]

If we import LNG from the USA it doesn't really solve anything, just creates a new and expensive energy dependency:

The company recently started up its Golden Pass export terminal on the US Gulf Coast and plans to make final decisions later this year on whether to proceed with the construction of similar facilities in Mozambique and Papua New Guinea.

 

[garyc]

Bloomberg is starting to sound like IOL, wording the article try and make it sound like Eskom has signed a deal with ExxonMobil without actually saying so. The Zululand Energy Terminal at Richards Bay has signed with ExxonMobil. This will in part offset the current LNG imports from Mozambique shutting down by 20230. Eskom has also singed an agreement with ZET for part of this fuel.