On February 19, 2025, industry leaders convened in Gauteng to explore liquefied natural gas’ (LNG’s) role in enhancing South Africa’s energy security, reinforcing natural gas company SLG’s commitment to a reliable and sustainable energy future.

As the country faces growing energy demands, SLG is strategically positioned, based on its 23-year track record, to support industrial and commercial consumers with secure, efficient and resilient LNG supply solutions. A comprehensive overview of the LNG value chain highlighted the journey from natural gas extraction to liquefaction enabling efficient storage and transport. This process optimises supply reliability, cost efficiencies and long-term sustainability.

SLG remains engaged in ongoing industry discussions regarding key LNG infrastructure developments that will shape South Africa’s energy landscape. One such project is the Zululand Energy Terminal (ZET), which is expected to become a critical LNG supply hub. Its infrastructure including LNG terminals, port-to-pipeline connectors, and an expanding distribution network is central to discussions among market participants. A structured Request for Proposal process is underway to allocate capacity rights at the terminal, ensuring participation by creditworthy entities and laying the foundation for a bankable, sustainable LNG supply framework.

Similarly, the Matola Import Terminal (MIT) in Mozambique serves as an important entry point for LNG into South Africa’s energy market. LNG is delivered via a Floating Storage and Regasification Unit at MIT, with regasified LNG transported through the ROMPCO pipeline and other expanding networks. This cross-border infrastructure is expected to play a role in addressing both immediate and long-term energy security needs for industrial users.

Beyond infrastructure, securing LNG supply requires strategic contracting expertise, an area where SLG continues to lead through innovative agreements that ensure market stability. LNG contracting remains a cornerstone of SLG’s strategy, with key principles such as Annual Contract Quantity, Upward/Downward Quantity Tolerance, and risk mitigation through structured agreements like Take-or-Pay clauses. Aligning supply with demand is critical, and contractual mechanisms such as the Annual Delivery Programme and Ninety Day Schedule reinforce SLG’s commitment to stability in LNG supply chains.

Additionally, SLG’s role as an LNG aggregator is transforming the industry. By bridging the gap between suppliers and buyers, SLG simplifies procurement, ensuring greater flexibility and resilience in gas supply. This aggregator function enables SLG to balance short-term market fluctuations while securing long-term stability, a critical factor in South Africa’s transition to a sustainable energy future.

As South Africa transitions toward a cleaner and more reliable energy landscape, SLG remains at the forefront. Explore how our LNG solutions are driving this change—visit our website or connect with our team today.

www.slgas.co.za | 031 812 0555