South Africa's Gas Strategy: Prioritizing LNG Imports and Regional Cooperation
Key Ideas
  • Nersa's new gas strategy focuses on LNG imports and regional partnerships to address declining supply from Mozambique.
  • Short- to long-term measures include infrastructure development, policy reform, and integration of gas with renewable energy and hydrogen.
  • The strategy aims to reduce import dependence by developing indigenous gas resources and emphasizes the importance of policy and regulatory coordination.
  • Recommendations include prioritizing LNG for short- to medium-term, investing in LNG infrastructure, and pursuing regional partnerships for gas supply security.
The National Energy Regulator of South Africa (Nersa) has unveiled a new gas strategy that places emphasis on the prioritization of liquefied natural gas (LNG) imports and regional cooperation in light of declining supply from Mozambique. The strategy, geared towards securing energy supply during South Africa's transition to a low-carbon economy, outlines a series of short- to long-term measures. These measures encompass infrastructure development, policy reform, and the integration of gas with renewable energy and hydrogen. Stakeholder engagement played a significant role in shaping the strategy, which underscores the need for urgent action to address decreasing gas imports from Mozambique. The report advocates for LNG as a short- to medium-term solution, calling for investments in LNG import infrastructure and diversified gas sources. Additionally, it supports the development of indigenous gas resources to lessen import reliance and enhance energy resilience. To facilitate sustainable growth in the gas sector, the report stresses the importance of finalizing and implementing the Gas Master Plan and the Gas Amendment Bill. It also highlights the necessity of policy and regulatory coordination across gas, renewable energy, and hydrogen sectors. The strategy advocates for regional partnerships with countries like Mozambique, Tanzania, Namibia, and Angola, alongside increased domestic gas utilization across various sectors. Ultimately, the goal is to foster investment, create a conducive environment for the gas sector, and promote integrated energy planning and infrastructure development.
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