Exxon Mobil announced that it has signed a preliminary deal to supply liquefied natural gas (LNG) to South Africa's Zululand Energy Terminal in Richards Bay, which will be the country's first LNG import facility once built.

The planned terminal is part of South Africa's pivot away from coal-fired power generation, which accounts for the bulk of the country's electricity supply.

Reuters reported in March that the Zululand Energy Terminal (ZET) hoped to strike a deal with Exxon Mobil on LNG supplies in the coming months.

The participation of Exxon Mobil helps reinforce the importance of Richards Bay port, where ZET is being built on South Africa's east coast, as an entry point for LNG and supports plans to unlock a "competitive and sustainable gas market", said Oliver Naidu, ZET director.

Exxon Mobil has identified South Africa as a priority market and wants to grow its LNG supply to more than 40 million metric tonnes per annum by 2030.

"This agreement reflects Exxon Mobil's global LNG experience and our commitment to support South Africa's energy security with reliable supply," said Andrew Barry, chairman of ExxonMobil LNG Market Development Inc.

Earlier this month, power utility Eskom signed a long-term LNG agreement with ZET that will support a planned 3,000-megawatt gas-to-power plant project.

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