South Africa Stumbles Towards a 'Gas Cliff' as Industrial Buyers Face Shortages

South Africa is on a path towards a 'gas cliff' as demand for natural gas far exceeds supply, with over 300 industrial buyers facing severe shortages. Jaco Human, executive officer of the Industrial Gas Users Association-South Africa (IGUA-SA), warns that the country's reliance on Mozambique's Pande and Temane fields will soon dwindle.

The IGUA-SA estimates that these fields will no longer supply gas by 2030, forcing industrial buyers to find alternative sources. However, Human notes that implementing new infrastructure measures to facilitate alternative sources of supply has been delayed, exacerbating the problem.

Sasol, one of South Africa's largest natural gas suppliers, will continue to carry methane-rich gas until mid-2028 but will then cease supplying third-party industrial users.

Experts warn that this shortage could have far-reaching consequences for the country's manufacturing sector, which relies heavily on natural gas. The sector accounts for 8% of South Africa's national GDP and includes key industries such as chemicals, glass, steel, automotive, and food processing.