South Africa has proposed a long-term liquefied natural gas (LNG) import deal with the United States, aiming to strengthen trade ties with the Trump administration. The proposed agreement would see South Africa import 75 to 100 million cubic meters of LNG annually over a 10-year period, according to a government statement.
Minister in the Presidency Khumbudzo Ntshavheni said the deal could unlock between $900 million and $1.2 billion in annual trade, totaling up to $12 billion over a decade. The LNG imports from the U.S., currently the world’s largest exporter, would complement—rather than replace—South Africa’s existing gas supplies.
South Africa also hopes to explore broader energy cooperation with the U.S., including technologies like fracking. Although South Africa’s Karoo region holds large shale gas reserves, exploration remains on hold due to environmental concerns.
The proposed trade package extends beyond LNG. It includes duty-free access to the U.S. for 40,000 vehicles annually, South African-made automotive components, 385 million kilograms of steel, and 132 million kilograms of aluminum.
President Cyril Ramaphosa is believed to have proposed the LNG deal during his recent visit to Washington, D.C. The visit came amid strained relations with the U.S. government, which has criticized South Africa’s domestic policies, including land reform and Black Economic Empowerment.
During the visit, former President Donald Trump accused Ramaphosa of “genocide” against white farmers and halted aid to South Africa. The tensions have been amplified by South African-born billionaire Elon Musk, a close Trump ally, who has spoken out against South Africa’s policies.
Earlier this year, U.S. Secretary of State Marco Rubio declared South Africa’s ambassador to the U.S., Ebrahim Rasool, persona non grata and expelled him. Washington has also denounced South Africa’s legal action against Israel at the International Court of Justice.
South Africa currently depends on pipeline gas from Mozambique. However, Mozambique’s $20 billion LNG project has faced repeated delays due to ongoing violence in the Cabo Delgado region. The facility—operated by TotalEnergies with a 26.5% stake—is now expected to begin production by 2029.
Other partners in the project include Japan’s Mitsui & Co (20%) and Mozambique’s state-owned ENH (15%). The project is seen as vital to Mozambique’s economy and could generate $23 billion in revenue over 30 years.
Mozambique’s LNG capacity is set to grow significantly. The Coral South FLNG already processes 3.4 million metric tons of LNG annually and is Africa’s first deepwater FLNG facility. The upcoming Coral North FLNG, Rovuma LNG (18 million tpy), Mozambique LNG (43 million tpy), and Tanzania LNG (10 million tpy) are expected to boost Africa’s gas export potential in the coming years.
While 18 African countries produce natural gas, Algeria, Egypt, and Nigeria account for nearly 90% of the continent’s total output. Nigeria, with 206.5 trillion cubic feet in reserves, relies on oil and gas for 95% of its foreign earnings and 20% of GDP. Several major LNG projects across the continent are expected to secure final investment decisions in the next decade.
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