Durban, February 20, 2026 – The Europe Today: South Africa is planning the development of a new $3 billion liquefied natural gas (LNG) plant at the Port of Durban, as part of efforts to diversify its energy mix and enhance electricity reliability. Global commodity trader Vitol is backing a consortium seeking to construct the power station alongside an LNG import facility.
The proposed project comes as South Africa continues to rely heavily on coal, which currently accounts for approximately three-quarters of the country’s energy generation. While the government has committed to achieving net-zero emissions by 2050, it faces the pressing challenge of ensuring stable electricity access, with nearly 40 percent of the population still lacking reliable power supply at home.
Officials view natural gas as a transitional fuel that can support the country’s gradual shift toward cleaner energy sources. Proponents argue that leveraging Africa’s substantial untapped gas reserves could help accelerate electrification across the continent while complementing renewable energy expansion.
A senior fellow at the Atlantic Council Africa Center recently noted that utilizing gas resources to enhance electrification is “reasonable and fair,” suggesting that gas can play a supportive role in stabilizing grids and boosting renewable energy integration.
However, the proposal has also drawn criticism from environmental advocates and energy experts who caution against further investment in fossil fuel infrastructure. Critics argue that South Africa should prioritize scaling up solar, wind, and green hydrogen projects instead of committing to additional gas-based power generation.
The LNG initiative underscores the ongoing debate within South Africa over balancing urgent development needs, energy security, and long-term climate commitments as the country navigates its transition toward a more sustainable energy future.
