South Africa, June 17 -- The planned terminal is part of South Africa's pivot away from coal-fired power generation, which accounts for the bulk of the country's electricity supply.

Reuters reported in March that the Zululand Energy Terminal (ZET) hoped to strike a deal with Exxon Mobil on LNG supplies in the coming months.

The participation of Exxon Mobil helps reinforce the importance of Richards Bay port, where ZET is being built on South Africa's east coast, as an entry point for LNG and supports plans to unlock a "competitive and sustainable gas market", said Oliver Naidu, ZET director.

Zululand Energy Terminal director, Oliver Naidu (left) and Eskom group executive for strategic delivery, Alfred Seema, seal the deal with a hands...