Sasol has thrown SA’s gas market a lifeline, announcing plans to extend supply from its operations to 2030, giving the country two more years to secure alternative sources and avert a potential “gas cliff”.
The company said on Thursday it had confirmed the technical feasibility of supplying methane-rich gas (MRG) from its Secunda operations to external customers between July 2028 and June 2030. This follows growing concern over the impending decline of Mozambique pipeline gas, which currently anchors SA’s industrial gas supply.
The risk of a “gas cliff”, a potential supply gap as Mozambique’s gas production tapers off, remains a pressing concern in policy and industry circles. While Sasol’s supply commitments were due to end in June 2028, the extension to 2030 merely delays the challenge.
“The MRG solution provides a critical supply bridge while liquified natural gas (LNG) infrastructure is being developed, and we are engaging customers to ensure alignment on this approach,” said Sasol Gas senior vice-president for marketing & sales energy Dumisani Bengu.
The extension buys SA additional time to address the potential gas shortfall, but industry stakeholders have warned that broader structural and planning challenges remain. The recent Integrated Resource Plan (IRP) 2025 recognises gas as an important part of the country’s energy mix, projecting it could account for 11% of electricity generation by 2039.
However, gas associations, including the Industrial Gas Users Association of Southern Africa (IGUA-SA) and the SA Oil & Gas Alliance (SAOGA), have highlighted concerns over the plan’s execution.
IGUA-SA CEO Jaco Human emphasised the need for a clear strategy to secure gas supply, warning that SA risks increasing its dependence on imports without a cohesive roadmap. SAOGA also stressed that success will depend on translating policy into actionable plans across the supply chain, from production and transport to power generation and industrial offtake, while ensuring the right-sized infrastructure is in place.
Sasol said the rollout of MRG will depend on approval from the National Energy Regulator of SA (Nersa) for the company’s maximum gas price application.
“We have begun discussions with Nersa to ensure a fair and transparent process, while engaging customers to confirm demand, assess infrastructure readiness, and support a final investment decision on the modifications needed to enable MRG supply,” said Sasol.
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