International Consortium Plans $3 Billion Gas Power Project in Durban

A consortium of international energy companies is planning to build a $3 billion gas-fired power station and liquefied natural gas (LNG) import facility at the Port of Durban.

The project is being backed by the global commodity trader Vitol, alongside Saudi Arabia's ACWA Power, Vivo Energy (which last year merged with local fuel retailer Engen), and terminal operator VTTI. Together they plan to construct a combined cycle gas turbine power station of between 1 000 and 1 800 megawatts, paired with an LNG import terminal at Durban's port.

A functioning LNG import terminal at Durban would for the first time give South Africa reliable access to global gas markets, reducing dependence on the limited domestic gas supply piped from Mozambique.

Beyond electricity generation, the project also plans to supply gas through the existing Lilly pipeline to Secunda, deliver LNG by road to mines and industrial operations that currently rely on diesel, and provide bunkering fuel for ships at the port, potentially catalysing a much broader local gas economy.

The estimated cost of $3 billion makes this one of the largest private energy investments proposed in South Africa in recent years, and the involvement of established international players with a track record on the ground here lends it credibility. Timelines have not yet been confirmed, and much work remains before shovels go in the ground.

At a time when South Africa urgently needs both new generation capacity and fresh private investment, this is precisely the kind of project the country has been waiting for.