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Exxon Mobil eyes South Africa as a top LNG destination
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Exxon Mobil eyes South Africa as a top LNG destination
Sep 30, 2025 9:23 AM

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.

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