Lerato Mbhiza
Mineral Resources and Energy Minister Gwede Mantashe said alternative plans will be made to counter the looming gas shortage adding that the government is working with the private sector to ensure the so-called gas cliff does not harm the economy or lead to job losses.
South Africa will face a gas shortage from June 2026 after the chemical company Sasol announced that it will stop supplying natural gas from Mozambique.
Business Leadership South Africa (BLSA) said that the government has not come up with concrete plans to develop alternative infrastructure despite several warnings.
But while addressing the Africa Energy Indaba in Cape Town on Tuesday morning Mantashe said the government is aware that the economy cannot afford a shortage of gas.
“Having noted this eventuality, we, together with the Department of Trade, Industry, and Competition, have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses.”
Mantashe said his department would also present the country’s Gas Master Plan to the cabinet in March.
“Our understanding is that this is in relation to the gas flow decline at source. It is a known fact that natural gas, like other natural resources, is a finite resource and, therefore, Sasol reaching a cliff in its gas block in Mozambique is not an anomaly.
“Having noted this eventuality, we, together with the Department of Trade, Industry, and Competition, have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses.
“We want to use gas in South Africa, we are committed to that. We are working against a lot of resistance where foreign-funded NGOs are blocking any exploitation of gas.
“Our view is that we must actually have a candid discussion whether we must stop development or can we have development working with a climate conducive environment, they must complement one another.
“We’re finalising regulations for our understanding that this is in relation to the gas flow decline at source. It is a known fact that natural gas, like other natural resources, is a finite resource and, therefore, Sasol reaching a cliff in its gas block in Mozambique is not an anomaly.
“Having noted this eventuality, we, together with the Department of Trade, Industry, and Competition, have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses.”
“For example, will people protest against shale gas, but they want gas? Those are the things that we must confront. That is already talking about alternatives. In the input we indicated that there’s gas discovery in Mpumalanga, that is part of the overall plan on the part of the state,” said Mantashe.
The department’s Director General Jacob Mbele added that the government’s gas masterplan to develop its gas market will be taken to cabinet for approval before the end of this month.
“There are proposals that are inside the gas master plan in terms of the pursuit of other sources of gas,” said Mbele.
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