Global commodity trader Vitol is supporting a consortium that plans to develop a $3 billion gas-fired power station alongside a liquefied natural gas (LNG) import facility at South Africa’s east coast Durban port, a company spokesperson confirmed, according to Reuters.
South Africa considers natural gas essential to its transition away from coal-fired power stations, which currently generate the bulk of electricity in Africa’s most industrialised economy.
At the same time, Vitol is seeking to establish a strong position in a market aiming to add 16 gigawatts of new gas-fired generation capacity by 2039.
According to the Vitol spokesperson, the consortium includes ACWA Power, Vitol subsidiary Vivo Energy, which merged with Engen in 2024, as well as terminal operator VTTI.
ACWA Power, already a significant developer and investor in solar and hybrid energy projects across South Africa, did not immediately respond to requests for comment.
The project, which has not previously been reported, was granted Strategic Integrated Projects status by the state in September, according to government and Vivo Energy officials.
This designation enables faster development by cutting through bureaucratic requirements such as licensing procedures.
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In a document submitted to South African lawmakers and reviewed by Reuters, Vivo Energy and Engen South Africa stated they were “advancing the development and investment into a 1,000 (to) 1,800 MW CCGT power generation plant with associated LNG importation infrastructure”.
The same document indicated that 20 hectares of land have been allocated for the project under the Durban marine terminal master plan.
However, it did not specify timelines, estimated gas volumes, or further cost details.
“The estimated cost is circa $3 billion. (About) timing, it is not possible to say at this stage. We shall provide updates as and when we are in a position to do so,” the Vitol spokesperson said, adding that it remains too early to determine the source of LNG cargoes.
A source familiar with the development said that, beyond electricity generation, the initiative aims to deliver “regasified LNG distribution through the Lilly gas pipeline, which links Secunda to Durban, LNG trucking to off-grid industrial and mining operations as well as LNG bunkering for shipping”.
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Image Credit: Baird Maritime
