Global commodities trader Vitol is backing a consortium that plans to build a gas-fired power plant and an LNG import terminal at Durban port on South Africa’s east coast. A Vitol spokesperson said the group includes Saudi Arabia’s ACWA Power, Vitol’s Vivo Energy unit (which merged with Engen in 2024), and terminal operator VTTI. The project is estimated to cost about $3 billion, though Vitol said it is still too early to confirm timelines or where LNG supplies would be sourced.
The proposal follows South Africa’s push to expand gas-fired generation as it gradually reduces dependence on coal, with the government targeting 16 gigawatts of new gas capacity by 2039. Government and Vivo Energy officials said the Durban project was granted fast-track status in September, which can shorten administrative processes such as licensing.
Documents submitted to South African lawmakers indicate the consortium is developing a 1,000 to 1,800 megawatt combined-cycle gas turbine plant together with LNG import infrastructure, and that 20 hectares have been set aside for it within Durban’s marine terminal master plan. A source familiar with the project said it may also include moving regasified LNG through the Lilly pipeline between Secunda and Durban, trucking LNG to industrial and mining sites not connected to the grid, and supplying LNG as fuel for ships at the port.
