South Africa is aiming to avert a looming gas shortage by increasing imports from neighbouring countries in the short term and by launching additional exploration projects for longer-term supply.
This plan of action was outlined in the draft Gas Master Plan (GMP) that was released by the Minister of Mineral Resources and Energy, Gwede Mantashe, on April 26.
Serving as a policy instrument in the face of supply constraints in South Africa, the Gas Master Plan is open for public and industry commentary until June 15.
As large scale local natural gas production currently remains a distant goal, the GMP recommends a massive expansion of exploration projects while also enabling potential development of other forms of gas available to the country.
For instance, importing piped gas and LNG from neighbouring countries with excess supply is a realistic option in the short to medium term, the Department of Mineral Resources and Energy (DMRE) said.
PetroSA, having recently obtained a gas trading licence from regulators, is expected to commence imports from Mozambique’s national energy company (ENH) from later in 2024.
While the initial agreement would see an annual supply of two petajoules of gas, this could potentially be upscaled to 200 petajoules, helping to meet the needs of major industrial consumers such as ArcelorMittal.
In August last year Sasol announced that South Africa was heading towards a “gas cliff” that could see the supply of industrial gas being suspended by mid-2026 as its gas reserves in Mozambique depleted.
The DMRE’s Gas Master Plan 2024 seeks to ensure security of gas supply by diversifying supply options from both local and international markets.
“The GMP will ensure that the country’s natural gas demand is well managed, and that the broader energy supply is secured once natural gas is enabled as a viable option from both the local and international markets, while minimising the total energy cost to the economy,” the DMRE said.
“This in turn will facilitate an efficient, competitive and responsive energy infrastructure network (gas storage facilities, LNG import facilities, pipeline network and regasification plants) that will enhance localisation, while at the same time creating jobs and growing the economy.”