Vopak Delays Final Investment Decision On South Africa

Wednesday 4th March 2026

By inAfrika Newsroom

South Africa LNG terminal delay deepened on Wednesday after Dutch tank storage operator Vopak pushed back a final investment decision on the Zululand Energy LNG import terminal at Richards Bay to the first quarter of 2028, citing slower progress after a court order affected a linked gas-to-power plan.

Vopak had earlier aimed to approve the project this year, but a September court order halted Eskom’s plans to develop a 3,000 megawatt gas-powered plant at Richards Bay, which reduced momentum for the LNG terminal’s offtake and planning.

Oliver Naidu, president of Vopak’s local unit, said the company extended its pre-FEED study, an early engineering and design phase, while awaiting clarity on Eskom’s direction. He said the consortium now expects to be ready for a final decision in early 2028.

The two-phase terminal is estimated to cost about $1 billion. Vopak was selected in 2024 as part of a consortium with Transnet Pipelines to build and run the terminal for 25 years at the Richards Bay port.

Naidu said the partners expect to sign preliminary agreements with Eskom and potentially with Exxon Mobil in coming months for LNG use and distribution. Exxon, a global LNG supplier, has previously identified South Africa as a priority market, Reuters reported.

The terminal was expected to initially import 2 million tons per year by 2027, before scaling to 5 million tons per year, according to earlier statements cited by Reuters. The schedule now looks materially altered, which matters for South Africa’s energy planning as it seeks flexible generation options and fuel diversity.

For the region, Richards Bay is a strategic logistics node. Any shift in gas import timelines also affects how investors and utilities across Southern Africa think about power pooling, industrial supply chains, and long-term fuel procurement.

South Africa LNG terminal delay Investors will watch for whether preliminary agreements with anchor customers are signed in 2026, and whether policy and regulatory steps clarify the role of imported LNG in South Africa’s power mix ahead of a 2028 investment decision.