The Minister of Mineral Resources and Energy (DMRE), Gwede Mantashe said that the department will present a gas master plan to Cabinet in March to address the supply issue the country is facing.
Mantashe said this at the Africa Energy Indaba on Tuesday and addressed the fact that South Africa may run out of natural gas supply in 2026.
South Africa faces a shortage of gas as Sasol has indicated it will no longer supply the domestic market.
The supplier of large-scale natural gas, announced in August 2023 that the supply of gas to industrial users will be suspended by June 2026.
This would have a major impact on several industries most predominately the manufacturing sector.
Mantashe said that he “noted concerns regarding the current and future gas supply in the South African market due to commercial disputes between Sasol and its customers”.
“Our understanding is that this is in relation to the gas flow decline at source. It is a known fact that natural gas, like other natural resources, is a finite resource and therefore, Sasol reaching a cliff in its gas block in Mozambique is not an anomaly,” he said.
“Having noted this eventuality, we, together with the Department of Trade, Industry and Competition, have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses.”
“The DMRE has also completed all the modelling and drafting work for the country’s Gas Master Plan, which we intend to present to Cabinet this month,” the minister added.
NUCLEAR ENERGY
Mantashe also said that SA should be able to further develop its uranium deposits into fuel for nuclear power.
“The European Union taxonomy declared both nuclear and gas as sustainable and part of transitional activities. It is, therefore, crucial for African nations to invest in gas infrastructure, including expansion of pipelines,” he added.
Mantashe said that SA’s uranium deposits could be developed for nuclear applications, especially fuel.
"We have rich deposits of uranium in South Africa. But the thing we must overcome. We are resisted by a partner called the US from developing our nuclear up to nuclear fuel stage," he explained.
He noted that the fuel would not be used for military applications but would be used for energy generation.
"We want to use for energy. We have it, and we must use it," he concluded.
IOL BUSINESS