S'abonner

South Africa faces major challenges in securing its gas imports

South Africa is at a decisive turning point in its energy transition, facing complex challenges to secure its natural gas supply and ensure the stability of its energy sector.

Share:

South Africa, in the midst of its energy transition, must manage a delicate balance between reducing its dependence on coal and securing its natural gas supply.
The transition to gas is imperative, but faces a number of obstacles, including delays in exploiting local discoveries and the inadequacy of existing infrastructure.
The 2024 Gas Master Plan attempts to address these challenges, but implementation remains hampered by financial and technical obstacles.
The ability to secure natural gas supplies relies on a combination of liquefied natural gas (LNG) imports and the exploitation of regional gas resources.
However, slow investment in critical infrastructure, such as pipelines and import terminals, and uncertainty over the development of domestic gas projects, accentuate the risk of shortages.

Increased risk of gas shortages and the industry’s response

The announcement that Sasol will stop supplying gas via the Rompco pipeline from 2027 is a wake-up call for the sector.
This decision, coupled with the gradual closure of Eskom’s coal-fired power plants, exacerbates the risk of gas shortages.
Demand for gas-fired power plants is growing, but domestic and regional sources of supply are struggling to meet projected needs.
Commodity Insights’ projections indicate a growing dependence on LNG imports, which could account for up to 87% of gas supply by 2050.
This situation exposes the country to fluctuations in international gas prices and currency risks.
Industry players stress the need for long-term contracts to secure supplies, and for investment in infrastructure to minimize these risks.

Regional outlook and strategic challenges

Regional collaboration offers a potential solution for mitigating gas supply risks.
Recent gas discoveries in Namibia offer an interesting opportunity for South Africa, although the lack of cross-border infrastructure currently complicates any rapid integration.
Discussions on better regional energy integration, combined with optimization of available resources, remain crucial to ensuring sustainable energy security.
South Africa’s energy sector will be able to navigate this uncertain environment with the help of rigorous strategic planning and strengthened regional partnerships.
The main challenge remains to guarantee a reliable and competitive gas supply, essential to support the country’s energy transition and preserve economic stability.

  • Populaires ​
MN8 Energy raises $575mn with Natixis CIB to strengthen its US solar debt
Carbon2Nature and Uría Menéndez launch reforestation of 90 hectares in Salamanca
TNB, Petronas and Terengganu Inc launch green hydrogen hub and hybrid solar in Malaysia
Occidental Petroleum reduces production in the Gulf of Mexico in the second quarter
Azule Energy announces major offshore gas discovery in the Angolan Congo Basin
Eni signs twenty-year agreement with Venture Global for 2 mn tonnes of LNG per year
Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
Angola Opens a New Gas Chapter with the Discovery of the Gajajeira Field
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
A US-sanctioned LNG vessel docks at Russia’s Arctic LNG 2 terminal
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan urgently secures LNG cargoes amid critically low reserves
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The EU proposal to ban Russian gas fuels uncertainty for the European market
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited achieves major breakthrough in offshore exploration in the Beibu Gulf
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies in Mozambique: $4.7 bn US loan challenged in court by NGO
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
U.S. Midstream: Gas pipeline projects shift focus to West and Northeast
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure launch gas partnership to power data centers in Pennsylvania
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas sets initial production record at Beetaloo site in Australia
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
Technip Energies signs major contract for floating natural gas unit in Africa
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
Slovakia targets European agreement on end of Russian gas and sanctions by Tuesday
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital acquires Middletown Energy to meet growing energy needs
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
LNG Canada launch has no immediate effect on gas prices
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum prepares its first gas drilling in Poland for August 2025
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
EU imposes secrecy on national strategies for Russian gas phase-out
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies joins PJM Interconnection, the largest power grid in the United States
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey plans to start gas supplies to Syria soon, says energy minister
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
China Reaches Record Energy Demand Without Boosting LNG Purchases
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production to hit historic high in 2025
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING