South Africa Faces Gas Shortage Crisis in 2028
South Africa's economy is facing a looming crisis due to an expected gas shortage in 2028. The country imports around 90% of its gas from Mozambique's Pande and Temane fields, but production there will decline after 2028. This has significant implications for industries that rely on natural gas, including chemicals and energy company Sasol.
Gas is not just another fuel in the energy mix; it carries strategic weight. Roughly 35-40% of the gas from Pande-Temane is used in Sasol's Secunda operations, where coal and natural gas are converted into synthetic fuels and chemical feedstocks. Another 35-40% goes to Sasol's chemicals complex at Sasolburg.
The gas cliff poses a risk not only to energy supply but also to industrial policy, food security, and manufacturing competitiveness. The Industrial Gas Users Association of South Africa estimates that alternatives such as LPG, diesel, or electricity could cost between double and five times what users currently pay for gas.