Global commodity trader Vitol is backing a consortium developing a planned $3 billion gas-fired power station and liquefied natural gas (LNG) import terminal at South Africa’s Durban port, according to a company spokesperson.

The project aligns with South Africa’s strategy to reduce reliance on coal-fired power plants, which still supply 80% of electricity to the continent’s most industrialised economy.

It also gives Vitol exposure to a market targeting 16 gigawatts of new gas-fired generation capacity by 2039.

The consortium includes Saudi Arabia’s ACWA Power, Vitol subsidiary Vivo Energy, which merged with Engen in 2024, and terminal operator VTTI, the spokesperson said.

In a document submitted to South African lawmakers, Vivo Energy and Engen South Africa said they were advancing plans to invest in a 1,000 to 1,800 megawatt combined-cycle gas turbine (CCGT) power plant, alongside associated LNG import infrastructure.

Durban terminal expansion plans

As part of a broader master plan for the Durban marine terminal, 20 hectares of land have been allocated for the development. The document did not specify timelines, projected gas volumes or a final cost.

The move follows a similar investment approach in Uganda, where last December Vitol’s subsidiary agreed to lend up to $2 billion to the Uganda National Oil Company (UNOC), one of the East African nation’s largest energy-sector financing deals, supporting the expansion of domestic petroleum infrastructure. Together, these initiatives signal Vitol’s growing role in financing Africa’s transition to cleaner and more diversified energy sources.

Source: Africabusinessinsider