Exxon Mobil has entered into a preliminary agreement to supply liquefied natural gas (LNG) to South Africa’s Zululand Energy Terminal (ZET), which is set to become the country’s first LNG import facility once constructed, Reuters reported.

The planned terminal forms part of South Africa’s broader shift away from coal‑fired power generation, which still provides the majority of the country’s electricity supply.

ZET was aiming to finalize an LNG supply agreement with Exxon Mobil within the coming months, Reuters reported in March.

Exxon Mobil’s participation underscores the strategic importance of Richards Bay port—where ZET is being developed on South Africa’s east coast—as a key entry point for LNG, while also supporting plans to unlock a “competitive and sustainable gas market,” according to Oliver Naidu, ZET director.

Exxon Mobil has designated South Africa as a priority market and is targeting growth in its LNG supply to more than 40 million metric tons per year by 2030.

“This agreement reflects Exxon Mobil’s global LNG experience and our commitment to support South ​Africa’s energy security with a reliable supply,” ​Andrew ⁠Barry, chairman of ExxonMobil LNG Market Development Incorporation, commented.

Earlier this month, South Africa’s state power utility Eskom signed a long‑term LNG supply agreement with ZET to support a planned 3,000‑megawatt gas‑to‑power project.