South Africa promotes gas investments amid energy crisis, minister says
Minister Mantashe will promote these investment opportunities at the African Energy Week conference in Cape Town from November 4-8, 2024.
CAPE TOWN, South Africa— South Africa is aggressively pursuing oil and gas investments to address its ongoing energy crisis, with Minerals and Petroleum Minister Gwede Mantashe set to promote these opportunities at an upcoming energy conference in November, writes Winston Mwale.
The push comes as South Africa released its draft Gas Master Plan (GMP) in April 2024, aiming to secure a stable gas supply from both local and international markets.
The plan supports policies like the Gas Integrated Power Producer Procurement Program, which targets 2 GW of new generation capacity from land-based gas-fired power facilities.
"To address its energy crisis, South Africa needs natural gas," said NJ Ayuk, Executive Chairman of the African Energy Chamber.
"Exploration campaigns in both onshore and offshore basins have made clear the significant reserve potential in the market."
Recent developments in South Africa's oil and gas sector include:
- Energy majors TotalEnergies and QatarEnergy acquiring stakes in offshore Block 3B/4B.
- Eco Atlantic signing a farm-in deal for a 75% working interest in offshore Block 1.
- Panoro Energy applying for an exploration right for helium and natural gas in the onshore Karoo Basin.
- Kinetiko Energy progressing with a five-well gas flow testing program in Mpumalanga province.
South Africa's offshore potential has been bolstered by recent billion-barrel discoveries in neighboring Namibia between 2022 and 2024.
The country's onshore shale formations in the Karoo Basin are estimated to hold up to 209 trillion cubic feet of gas resources.
Beyond exploration, South Africa is seeking partners to invest in energy-related infrastructure, including hydrogen, power generation and transmission, refining, and distribution.
The country's Integrated Resource Plan 2023 indicates a need for 7.2 to 8.6 GW of new gas-to-power capacity to support industrialization and electrification efforts.
Minister Mantashe will promote these investment opportunities at the African Energy Week conference in Cape Town from November 4-8, 2024. The event is positioned as the primary platform for energy deals in Africa.
Despite the potential, Ayuk noted that "lack of investment continues to hinder development in the sector, further restricting the country's efforts to enhance energy security."