CAPE TOWN, Sept 30 (Reuters) -
Exxon Mobil ( XOM ) is eyeing projects in South Africa which
it views as a top destination for liquefied natural gas (LNG), a
senior gas executive said at an African energy conference in
Cape Town on Tuesday.
The U.S. is the world's top natural gas producer and the
largest LNG exporter and could entrench its dominance with
several new projects coming online, which could exacerbate a gas
glut by 2030.
South Africa has been in talks with rival LNG producer Qatar
as it looks to secure supplies for its industry as imports from
neighbouring Mozambique, which supplies the bulk of gas via
pipeline, start to run dry, the electricity minister said
previously.
"We've identified South Africa as one of the most top
priority markets to seed long-term LNG sales into the country,"
said Shahrukh Mirza, Exxon Mobil's ( XOM ) vice president of LNG market
development and origination.
"That means that you have to build or enable LNG import
infrastructure with partnerships for you to do that."
Studies by the U.S. oil major suggested South Africa would
need anywhere between 6 and 7 gigawatts of new gas-fired power
plants, Mirza said, as the country moves away from coal-fired
power plants to cleaner forms of energy, including wind and
solar power.
In May, South Africa offered to buy LNG worth billions of
dollars from the U.S. over a 10-year period as part of proposals
to secure a new trade deal. However, after several unsuccessful
attempts to propose a trade agreement, U.S. President Donald
Trump in August imposed a 30% tariff on imports from Africa's
most developed economy.
Exxon Mobil ( XOM ) affiliates previously signed a memorandum of
understanding with Dutch firm Royal Vopak to collaborate on a
feasibility study to assess the commercial and technical aspects
of an LNG regasification terminal in South Africa.
Vopak and partner Transnet Pipelines were selected last year
by South Africa to develop and operate an LNG terminal at the
Port of Richards Bay for 25 years.
"We believe that's the start, we believe there is going to
be a requirement for more and we want to be in that (space),"
Mirza said.