South Africa is planning a $3 billion liquefied natural gas (LNG) power plant at Durban Port, as the country looks for ways to fix long-standing electricity shortages.

The project is backed by a consortium supported by Vitol, one of the world’s biggest commodity traders. The plan includes both a gas-fired power station and an LNG import terminal.

South Africa currently gets about 75% of its electricity from coal, but the government wants to cut emissions and reach net-zero by 2050. Gas is being promoted as a transition fuel, especially as around 40% of people still lack reliable electricity.

However, the project is controversial. Some energy experts argue that investing in gas locks the country into another fossil fuel and say South Africa should instead focus on solar, wind, and green hydrogen, where it already has strong potential.
In short, the LNG plant could help ease power cuts in the near term but it also raises big questions about South Africa’s long-term clean energy future.