NERSA Backs Changes to South Africa Gas Regulatory Framework

National Energy Regulator of South Africa (NERSA) has backed proposed changes to the country's gas regulatory framework, which would give LNG importers and traders greater access to regasification facilities and gas distribution networks.

The proposed Gas Bill provisions extend mandatory third-party access to distribution pipelines and LNG regasification facilities, currently outside these requirements. NERSA argues that this change is necessary to enable greater participation in a market characterized by significant barriers to entry.

Nomfundo Maseti, full-time regulator member responsible for gas at NERSA, said that third-party access currently applies to transmission pipelines and storage facilities but not distribution networks. This limits smaller suppliers' ability to reach customers within an incumbent distributor's exclusive area.

NERSA also supports extending third-party-access requirements to LNG regasification facilities due to their high capital costs and natural-monopoly characteristics, making it unlikely for competing facilities to be developed in the same market.