Mineral and Petroleum Resources Minister Gwede Mantashe says government is “moving with urgency” to ensure security of gas supply to avert a looming “industrial cliff-edge”.

Addressing a forum on gas at the Africa Energy Indaba, Mantashe said a two-pronged strategy was being implemented that included the immediate import of liquefied natural gas (LNG) and accelerated domestic gas development.

“For decades, piped gas from Mozambique’s Pande and Temane fields has met approximately 90% of our demand. These fields are now in decline. This is not merely an industry concern, it is a national economic risk,” the Minister said.

He described Sasol’s proposal to supply methane-rich gas as a bridging solution for the period between 2028 and 2030 as offering “critical breathing space” for the finalisation of LNG import infrastructure.

“Our strategic LNG hubs are progressing toward implementation,” he said, without providing details.

The Minister asserted, however, that the sustainable long-term solution lay in domestic production, and made specific reference to offshore potential in the Orange and Outeniqua basins, as well as onshore developments, such as the Virginia gas project, Thungela Resources’ Lephalale coalbed methane project and Kinetiko’s gas project in Mpumalanga.

Industrial Gas Users Association – Southern Africa executive officer Jaco Human said that much of the Minister’s speech resonated with the organisation’s objectives and outlook for the potential of natural gas in the region.

“However, we have heard similar messaging from government for more than a decade, without sufficient regulatory and policy action to support it,” Human added, while confirming that few new details were provided regarding how the gas cliff would be addressed.

“There is increasingly alignment in intent between the public and private sectors. But South Africa has very little economic runway left, and we need delivery, not intent, to leverage this potential into economic growth,” Human said.