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South Africa’s Gas Supply Crisis Discussed at Natural Gas Symposium

by Krystal

Nearly 300 attendees gathered for the Natural Gas Symposium, hosted by the African Energy Leadership Center (AELC) in partnership with the Industrial Gas Users Association of Southern Africa (IGUA-SA). The event brought together key players from the gas and energy sectors, including upstream and exploration companies, industrial end-users, infrastructure financiers, regulators, and policymakers.

The symposium addressed the looming “gas cliff,” a potential natural gas shortage caused by the approaching end of life for South Africa’s primary gas source, the Pande-Temane fields in Mozambique. Experts warn that such a shortage could severely impact the country’s energy security, industrial competitiveness, and thousands of jobs.

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According to Jaco Human, CEO of IGUA-SA, a gas supply shortage could jeopardize around 60,000 direct jobs in industries reliant on natural gas, such as steel, automotive, food, beverage, and paper production. Many small and medium-sized enterprises (SMMEs), essential for job creation and poverty alleviation, would also suffer.

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Professor David Phaho, Director of the AELC, emphasized that addressing gas shortages must align with South Africa’s commitment to a just energy transition and climate goals outlined in the Paris Agreement. He noted that while natural gas is a fossil fuel, it has a lower carbon footprint compared to coal and oil, making it a crucial transition fuel towards a zero-carbon economy.

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The event featured an opening address by Minister of Electricity and Energy Dr. Kgosientsho Ramokgopa, followed by six panel discussions covering challenges and opportunities in the gas sector, including fiscal frameworks, regulations, and innovations.

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Professor Maurice Radebe, Director of Wits Business School, stressed the urgency of addressing South Africa’s energy crisis and finding practical solutions. He called for stakeholders to move beyond assigning blame and focus on actionable solutions.

In his closing remarks, Prof Phaho reiterated the commitment of Wits Business School to collaborate with various sectors—academic, governmental, state-owned, and private—toward developing a sustainable gas sector in South Africa.

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