South Africa aims to import US LNG worth $12 billion over ten years

South Africa has proposed a liquefied natural gas import agreement with the United States to strengthen bilateral trade and establish a long-term business partnership.

Share:

South Africa has formally proposed to import between 75 and 100 million cubic metres of liquefied natural gas (LNG) per year from the United States over a ten-year period. The offer, published on the official website of the South African government news agency, was signed by Minister in the Presidency Khumbudzo Ntshavheni. The contract value is estimated at $900mn to $1.2bn per year, totalling between $9bn and $12bn over the proposed duration.

The proposal is part of a broader business partnership initiative between the two countries, presented during South African President Cyril Ramaphosa’s visit to the White House on May 21. During the meeting, discussions focused on bilateral trade relations, as Washington has recently cut aid to Pretoria and imposed diplomatic restrictions.

Automotive and metal export quotas included in the plan

The submitted document specifies that South Africa also proposes an annual duty-free quota for the export of 40,000 vehicles to the United States. This would be complemented by preferential access for South African automotive components intended for production within the US. These measures aim to support the manufacturing sectors of both countries under a framework of mutual cooperation.

The proposal also includes annual export quotas of 385 million kilograms of steel and 132 million kilograms of aluminium from South Africa, which would be eligible for tariff exemption. If approved, these volumes would provide strategic access to the North American market for South Africa’s basic industries.

Energy goals and technology cooperation

In her statement, Khumbudzo Ntshavheni said that South Africa would work with the United States to explore technical cooperation opportunities, including hydraulic fracturing (fracking). This component aims to strengthen domestic capabilities in gas production, at a time when the country seeks to diversify its energy supply.

The energy proposal forms part of a broader set of economic negotiations Pretoria hopes to finalise in order to stimulate growth and rebalance its relationship with the United States. It comes at a time when the South African government is looking to offset the loss of trade benefits through long-term commitments with international partners.

Spire announces the acquisition of Piedmont’s natural gas distribution business in Tennessee for $2.48bn, extending its presence to over 200,000 customers and consolidating its position in the southeastern US gas market.
The state-owned oil company adjusts its rates amid falling oil prices and real appreciation, offering up to $132 million in savings to distributors.
The launch of the Dongfang 1-1 13-3 project by CNOOC Limited marks a milestone in offshore gas development in China, bringing new investments in infrastructure and regional production.
Woodside Energy will operate the Bass Strait gas assets following an agreement with ExxonMobil, strengthening its position in the Australian market while maintaining continuity of domestic supply.
The EU-US agreement could create a higher energy concentration than that of Russia before 2022, threatening the European diversification strategy.
Al Shola Gas strengthens its position in Dubai with major liquefied petroleum gas supply and maintenance contracts, exceeding $517,000, covering several large-scale residential and commercial sites.
BW Energy and NAMCOR E&P announce the engagement of the Deepsea Mira rig for drilling the Kharas appraisal well on the Kudu field, offshore Namibia, with a campaign scheduled for the second half of 2025.
The Permian Basin has seen a drop of over 50% in methane emissions intensity over two years, according to S&P Global Commodity Insights, illustrating the impact of advanced technologies and enhanced operational management.
Naftogaz and the State Oil Company of the Republic of Azerbaijan (SOCAR) have formalised an initial contract for natural gas delivery via the Transbalkan corridor, opening new logistical perspectives for Ukraine’s energy supply.
Equinor postpones the restart of its Hammerfest LNG terminal by five days, a key site for European liquefied natural gas supply.
Mozambique aims to strengthen the presence of Russian companies in natural gas exploration and production as the country looks to diversify its partnerships in the natural resources sector.
The International Energy Agency anticipates an acceleration in global liquefied natural gas trade, driven by major new projects in North America, while demand in Asia remains weak.
Spanish group Naturgy reports an unprecedented net profit, driven by rising electricity prices and increased use of its gas-fired power plants since the major Iberian grid outage.
The Hague court has authorised the release of Gazprom’s shares in Wintershall Noordzee, following a judicial decision after several months of legal proceedings involving Ukrainian companies.
SSE plc invests up to €300mn ($326mn) in a new 170MW power plant in County Meath, aiming to ensure energy security and support the growing demand on Ireland's power grid.
The Egyptian government has paid over $1 billion to oil majors to secure natural gas production and restore international investor confidence.
CMA CGM and TotalEnergies announce a strategic partnership with the creation of a joint venture to operate a liquefied natural gas (LNG) bunkering vessel with a capacity of 20,000 m³, based in Rotterdam.
The amount of gas flared globally surged to 151 billion cubic meters, the highest level in nearly twenty years, resulting in losses estimated at 63 billion USD and raising concerns for energy security.
Since early April, Europe has imported nearly 45 billion cubic meters (bcm) of liquefied natural gas (LNG), with storage prospects for winter putting pressure on gas prices.
The Sharjah Electricity, Water and Gas Authority has completed a natural gas network in Al Hamriyah, spanning over 89 kilometres at a total cost of $3.81mn.