Navigating South Africa’s Gas Supply Crisis: Challenges and Strategic Initiatives
Industrial pipeline symbolises infrastructure and gas supply solutions undertaken to restore South Africa's energy crisis. Image: Pixabay
South Africa is facing a critical gas supply crisis, with projections indicating a significant shortage as early as June 2026. This situation is primarily due to the anticipated decline in gas supplies from Mozambique’s Pande-Temane fields, operated by Sasol Petroleum Temane (SPT). The depletion of these fields has raised concerns about the country’s energy security and the need for alternative solutions.
A decline in Mozambique’s Gas Supply
Over the past two decades, Sasol has exported approximately 2.695 billion gigajoules of the 3.47 billion gigajoules produced in Mozambique. However, the decline in production from the Pande-Temane fields has prompted South Africa to seek alternative gas sources to meet its energy demands.
TotalEnergies’ LNG Project in Mozambique
In response to the looming gas shortage, TotalEnergies, in partnership with the Gigajoule Group, initiated the Matola LNG import terminal project in Mozambique. The project aimed to commence operations by mid-2025, providing a stable gas supply to South Africa. However, the project has faced significant delays due to security concerns in the Cabo Delgado province, leading to a force majeure declaration in April 2021.
Current Status and Future Prospects
As of December 2024, TotalEnergies has indicated that the LNG project may not resume until May or June 2025, contingent upon securing financial guarantees from the U.S. Exim Bank. This delay underscores the challenges in restoring a stable gas supply to South Africa.
Diversification of Gas Sources
Given the uncertainties surrounding the Mozambique LNG project, South Africa is exploring alternative gas supply options. Collaborations between Eskom and Sasol are underway to investigate the potential of liquefied natural gas (LNG) to mitigate the imminent gas shortage. Additionally, the country is considering the development of domestic gas fields and the importation of LNG from other regions to diversify its energy sources.
South Africa’s gas supply crisis presents a complex challenge that requires a multifaceted approach. While the TotalEnergies LNG project offers a potential solution, its delayed timeline and associated uncertainties highlight the need for diversification and strategic planning to ensure a stable energy future for the nation.
