South Africa's Gas Cliff Looms Large as Industry Leaders Scramble for Solution

South Africa is facing a looming 'gas cliff' that poses significant risks to industrial production, investment, employment, and the country's broader economic competitiveness. The gas supply from Mozambique's Pande and Temane fields is declining, leaving the country with the challenge of establishing alternative sources of gas quickly enough.

Sasol has announced plans to provide methane-rich gas from its Secunda operations as a temporary bridging solution from July 2028 to June 2030. However, this will not remove the fundamental challenge facing the country, and long-term security will require coordinated action across government and industry, together with investment in LNG import capacity, pipelines, storage, and associated gas infrastructure.

The IGUA-SA's updated Gas Roadmap has called for gas supply, LNG terminals, pipelines, storage, and gas-to-power infrastructure to be treated as strategic national economic infrastructure. The roadmap also emphasizes the need for stronger public-private coordination to accelerate implementation.