Updated June 5, 2026 – Eskom and the Zululand Energy Terminal (ZET) project have signed a long-term liquefied natural gas (LNG) agreement aimed at supporting Eskom’s planned 3GW gas-fired power plant in Richards Bay.
Under the agreement, Eskom will act as a “foundation customer” at the proposed LNG import terminal. The state utility will secure access to regasification, storage and supply infrastructure needed to underpin flexible power generation capacity.
The development also aligns with South Africa’s broader efforts to strengthen energy security, diversify the national energy mix and support grid stability. This is as the country accelerates its transition toward lower-carbon and more dispatchable power sources.
Eskom’s 3GW Gas Power Plant in Richards Bay Faces Uncertainty After South Africa Court Annuls Permit
Reported March 25, 2026 – A 3,000 MW natural gas-fired power plant project was planned in Richards Bay, South Africa, to support electricity generation capacity. The project faced uncertainty after the Supreme Court of Appeal annulled Eskom’s government-issued permit, citing inadequate public consultation.
The ruling required Eskom to refile its application and undertake a new round of public participation. Environmental groups, including the South Durban Community Environmental Alliance, supported the decision, citing concerns related to emissions and pollution.
Other Energy Projects Taking Shape in South Africa
Though South Africa and Eskom mostly focus on power generation projects such as gas plants and nuclear energy, nuclear is also used for science. South Africa state-owned NECSA will soon launch the next phase of a tender for a new $710 million multipurpose research reactor. The tender aims to maintain South Africa’s position as a top global exporter of medical isotopes. The isotopes are used to diagnose and treat disorders such as cancer and heart disease.
Richards Bay Gas-Fired Power Plant Project Fact Sheet
Developer: Eskom
Planned Capacity: 3,000 MW
Location: Richards Bay, KwaZulu-Natal, South Africa
Status: Permit annulled (Sept 17, 2025). Will need to undergo new public consultation
Cited Project Use: Grid stabilization, diversification from coal
Challenges Faced: Legal opposition, financing hurdles, environmental concerns
Court Annuls Permit for Eskom to Build Gas Power Plant: What are the Implications
The Richards Bay project was intended to stabilize South Africa’s grid, which continues to face recurring load-shedding. Eskom’s blowback comes at a sensitive time as the utility gets burdened by debt and a struggling coal fleet.
To counter this, the state utility has also been seeking to diversify its generation mix with natural gas as a transitional fuel. This complements ongoing investments in renewables and nuclear energy such as the construction of Africa’s second nuclear power plant in Western Cape.
Additionally, while natural gas remains part of the government’s Integrated Resource Plan (IRP), growing opposition from both legal and financial fronts may tilt the balance further toward wind, solar, and battery storage. Here, costs have declined and private sector interest is stronger.
South Africa’s Supreme Court of Appeal ruling to annul the permit for Eskom to build a 3 GW gas power plant also complicates the utility’s financing options. Multilateral lenders have also shown preference for funding renewables, while natural gas projects are increasingly scrutinized. This is clearly evidenced by the latest approval of the 1 GW Carrisa onshore wind project. With the Richards Bay plant valued in the billions of dollars, the annulment may delay or even derail procurement timelines.
The long-standing case also echoes wider trends in Africa where fossil-fuel projects are being challenged. However, neighboring countries like Namibia and Mozambique have pivoted to LNG export ambitions. South Africa continues to face domestic pushback over its reliance on fossil fuels.
Leave a Reply