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Court halts TotalEnergies offshore drilling amid SA gas crisis

Department’s authorisation found unlawful ‘as the process had not met environmental assessment and public participation requirements’

Picture: 123RF/IGOR SHKVARA
Picture: 123RF/IGOR SHKVARA

The Western Cape High Court has overturned the government’s approval of an environmental authorisation granted to TotalEnergies EP SA for offshore oil and gas exploration along the country’s southwest coast, between Cape Town and Cape Agulhas.

The court on Tuesday ruled the environmental impact assessment for the project was flawed, citing failures to adequately assess environmental, social, climate, and cross-border risks, and ordered a new decision-making process with fresh studies and public consultation.

The case was brought by environmental groups The Green Connection and Natural Justice, who challenged the environmental authorisation granted to TotalEnergies on several grounds. These included insufficient evaluation of the socioeconomic consequences of potential oil spills on small-scale fishers and coastal communities, inadequate consideration of coastal protection laws, and neglect of climate change impacts linked to fossil fuel development.

Judge Nobahle Mangcu-Lockwood found the authorisation, issued by the department of mineral & petroleum resources in April 2023 and upheld on appeal by the minister of forestry, fisheries and the environment in September, was unlawful, as the process had not met legal requirements for environmental assessment and public participation.

The Green Connection strategic lead Liziwe McDaid said the case was an important victory for all South Africans and neighbouring communities who may be affected.

“It sends a clear message about what should be expected when a project carries serious environmental and social risks. Our laws demand full, open and honest assessment,” said McDaid.

“For small-scale fishers, tourism operators and coastal residents it means the law protects the ocean they depend on. For the public, it shows that environmental rights have real force in court. For our neighbours, it means transboundary impacts must be assessed.”

Jaco Human, CEO of the Industrial Gas Users Association of Southern Africa, said the judgment reflects a concerning trend in which campaigns — sometimes influenced by international agendas — undermine SA’s economic development.

“While environmental protection is essential, these actions can come at the expense of local job creation, industrial growth and efforts to secure a cleaner, cost-efficient energy future,” said Human.

The ruling comes as SA faces a looming “gas cliff”, linked to the expected reduction in supply from Mozambique’s Pande and Temane fields, which provide more than 85% of the country’s natural gas.

Sasol, the country’s largest gas processor, has warned that volumes could fall sharply by 2027, with supply potentially ceasing by mid-2028.

The fields support thousands of jobs and contribute about 5% to the country’s GDP, while gas-dependent industries employ about 75,000 people and generate an estimated R600bn annually.

Stakeholders are exploring a range of options to manage the potential shortfall.

Domestic and regional gas development, particularly on the west coast, is viewed as a way to provide greater locally controlled supply security over the long term, while liquefied natural gas (LNG) imports, though viable, are costlier and primarily suited to bridging the gap in the short term.

Natural Justice defending rights programme manager Melissa Groenink-Groves said the judgment was a victory “in the growing opposition to oil and gas exploration in our country”.

“It confirms our fight for environmental rights is strong, and we must continue for the future of our children,” said Groenink-Groves. “We will continue to use the courts to ensure that oil and gas exploration is properly scrutinised and that our people and resources are not exploited.”

Human said SA urgently had to review and adapt its legislative framework to allow the responsible exploration and development of its natural resources, warning that failure to do so risked leaving the country behind while neighbouring nations capitalised on the same opportunities.

“The country faces a looming ‘gas cliff’, yet projects that could secure domestic gas are being delayed or halted. Without domestic gas, energy costs and supply risks rise, and economic regression is accelerated. 

“Just a few hundred kilometres north, Namibia is developing the same basin, positioning itself as a regional energy hub and attracting significant investment. Meanwhile, by blocking domestic gas projects, SA risks falling behind, facing lost opportunities, higher energy costs, and declining industrial competitiveness,” said Human.

tsobol@businesslive.co.za

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