Affiliates of Exxon Mobil Corporation (ExxonMobil) and Royal Vopak (Vopak) have signed a Memorandum of Understanding (MoU) to work on a feasibility study to assess the commercial, technical and regulatory aspects of an LNG regasification terminal in South Africa.

Both companies are to evaluate the infrastructure that is critical for South Africa to take advantage of the benefits that LNG can bring to the country. Part of the ways to achieving these benefits is to repurpose the older coal power plants, convert peaking power plants and secure supply for South Africa’s industrial sector. LNG in the country is to provide a reliable, cost-effective fuel source and help to reduce carbon emissions.

Commenting, the LNG Market Development President for ExxonMobil, Irtiza Sayyed said, “ExxonMobil is excited to work with Vopak to evaluate innovative approaches to bring competitive LNG projects to South Africa. As a gas industry leader with strategic access to LNG supplies around the world, ExxonMobil is well-positioned to supply cleaner, reliable energy to power South Africa in the future.”

The President of Vopak LNG, Kees van Seventer said, “Our collaboration with ExxonMobil will allow us to leverage our global expertise and experience to develop resilient and efficient LNG infrastructure for South Africa. With our presence of nearly 25 years in South Africa, we are committed to enhance Vopak’s terminal network in the country with sustainable infrastructure solutions.”

Both companies have worked on several projects across the energy sector for many years. Vopak is an LNG terminal developer, and ExxonMobil is an expert in LNG logistics solution. In the long run, the project is to help to secure the gas supply of South Africa.