Minister of mineral and petroleum resources Gwede Mantashe says South Africa is well-resourced and endowed to avoid the dreaded gas cliff if it just explores and exploits the resources at its disposal.
The minister was speaking at the Africa Gas Forum in Cape Town on Thursday morning. The event is taking place in parallel with the Africa Energy Indaba, where President Cyril Ramaphosa spoke on Wednesday.
Last year electricity and energy minister Kgosientsho Ramokgopa warned that SA faced a gas cliff and that the government was working with institutions, including Sasol and Eskom, to approach Qatar for 180 petajoules of gas per annum.
Mantashe is of the view that South Africa has sufficient gas resources that need to be explored and exploited. He said if these are utilised to their fullest potential, South Africa can avoid the gas cliff altogether.
“We talk of the gas cliff in 2028. And that position assumes that we are not discovering gas. But if we discover gas and exploit it, there is going to be no gas cliff, because we have the gas deposits and they don’t migrate. We must exploit them,” he said.
To avert an industrial cliff-edge, we are implementing a two-pronged strategy: immediate imports and accelerated domestic development.
— Gwede Mantashe, minister of mineral and petroleum resources
He said for decades, piped gas from Mozambique’s Pande and Temane fields met approximately 90% of South Africa’s demand, but these fields are now in decline. This is not merely an industry concern; it is a national economic risk, he warned.
“To avert an industrial cliff-edge, we are implementing a two-pronged strategy: immediate imports and accelerated domestic development.
“We acknowledge Sasol’s proposed methane-rich gas bridging solution for the period 2028 to 2030. This intervention provides critical breathing space as we finalise our LNG import infrastructure.”
The world is currently in a time of heightened geopolitical tensions, driven by the global scramble for greater access to and control of natural resources, including oil and gas, he said.
“History reminds us that resource-endowed nations often bear the brunt of such tensions. Africa is no exception.”
Africa accounts for 7% of known global gas reserves and contributes less than 4% of global greenhouse gas emissions, he added. In that context, the strategic utilisation of our three domestic gas resources is not speculative but is foundational to a just and realistic energy transition that recognises the socio-economic realities.
Business Times
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