International energy trader Vitol has thrown its support behind a proposed $3 billion liquefied natural gas (LNG) power plant and import terminal at the Port of Durban, a development that could help diversify South Africa’s power mix and reduce reliance on coal, Reuters reported.
The project is being advanced by a consortium that includes Vitol, Saudi Arabia’s ACWA Power, Vitol’s fuel unit Vivo Energy, which merged with Engen in 2024 and terminal operator VTTI. It has been granted Strategic Integrated Project status by the South African government, a designation intended to accelerate permitting and regulatory clearances.
If realised, the facility would combine an LNG import terminal with a 1,000 MW to 1,800 MW combined-cycle gas turbine (CCGT) power plant. Developers have earmarked roughly 20 hectares at the Durban marine terminal for the plant and associated infrastructure, though details on financing, gas supply and project timeline remain under discussion.
South African authorities view LNG as a complementary fuel to the country’s dominant coal generation, with the Durban project expected to support industrial energy demand, distribution through regasification, and potential LNG bunkering for maritime clients. The initiative reflects growing interest from global energy firms in helping South Africa transition toward cleaner-burning fuels amid ongoing challenges with grid reliability and emissions, MarketScreener noted.
