Rédaction Africa Links 24 with Ray Mahlaka
Published on 2024-02-27 21:12:13
The Industrial Gas Users Association of Southern Africa has continuously warned the South African government about the impending gas crisis that may occur by June 2026. This situation arises from the fact that petrochemicals manufacturer Sasol will cease supplying natural gas from Mozambique beyond this date. Despite these warnings, the government has been accused of moving too slowly to address the looming crisis.
The potential halt in gas supplies will have significant repercussions for South Africa’s economy, impacting up to 70,000 jobs and contributing approximately R500 billion annually. Various industries in regions such as Gauteng, Free State, KwaZulu-Natal, and Mpumalanga rely on gas for operations, including steel, chemicals, glass, food, and more.
The Industrial Gas Users Association highlighted the potential consequences of a “Day Zero” scenario, where South Africa runs out of gas. This situation would affect not only large industrial users like Consol Glass, Illovo, and Mondi, but also smaller businesses, hospitals, and households. The disruption in gas supplies could force businesses to switch to more expensive and environmentally damaging fuels, impacting consumer pricing and carbon emissions.
Despite warning signals being raised for the past six years, little progress has been made to address the impending gas shortages. With only four months remaining until Sasol’s contract ends, urgent measures need to be put in place to prevent any disruptions in gas supplies. The lack of gas infrastructure development over the years, coupled with dwindling supplies from Sasol, further exacerbates the situation.
Sasol, holding a monopoly on natural gas supply in key regions of South Africa, has announced the suspension of gas supply by June 2026 due to depleting gas fields. While there are ongoing gas developments in neighboring countries like Namibia and Mozambique, securing supply agreements and expanding infrastructure pose challenges in a timely manner.
To avert a potential “Day Zero” scenario, the Industrial Gas Users Association has proposed several measures. These include establishing sufficient gas-to-power capacity, increasing power availability through gas-to-power developments, linking pipelines to ensure energy security, providing financial support for infrastructure investments, and phasing out gas supply in a reasonable manner.
The urgency of addressing the impending gas crisis cannot be overstated, as it not only impacts industrial users but also has far-reaching effects on the economy and society as a whole. Collaborative efforts between the government, industry stakeholders, and gas suppliers are essential to ensure a smooth transition and avoid disruptions in gas supply that could have serious consequences for South Africa.
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