{"id":62202,"date":"2024-03-04T15:59:08","date_gmt":"2024-03-04T15:59:08","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff"},"modified":"2024-03-04T16:13:24","modified_gmt":"2024-03-04T16:13:24","slug":"south-africa-heading-for-a-cliff","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff","title":{"rendered":"South Africa heading for a cliff"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>South Africa is heading for another cliff, with the country\u2019s gas supply expected to run out in as little as two years, says Business Leadership South Africa CEO, Busi Mavuso.<\/p>\n

\u201cMany industries rely on gas as an energy source, from glass making to beverages. The current main source of supply, two gas fields in Mozambique operated by Sasol, will not supply South African clients from mid-2026 since Sasol will fully utilise the remaining gas itself,\u201d she said.<\/p>\n

\u201cAs with electricity, there have been warnings for some time that this was coming. But through a combination of policy inaction and an inability to commit to the large-scale investment needed to create alternative infrastructure, we now face an almost inevitable supply interruption.\u201d<\/p>\n

Mavuso said that South Africa can avoid the worst of the crisis, but only if the government takes swift action \u2013 and allows businesses to partner with them.<\/p>\n

But even in the best-case scenario, the country will suffer at least a year-long gap.<\/p>\n

\u201cIt takes massive investment to develop new sources of gas and infrastructure to get it to where it is needed, and as it stands, the best options still envisage a 12-18 month gap between the end of Sasol\u2019s supply and any new supply coming on stream,\u201d she said.<\/p>\n

Mavuso\u2019s warnings echo those of Jaco Human, executive officer of the Industrial Gas Users Association of South Africa (IGUA-SA), who raised the alarm this past week about the situation.<\/p>\n

Human also noted that the problem is not new, but has not received the necessary attention from the government. The result is that the impact of the crisis is now real \u2013 and South Africa effectively sits with a new \u2018day-zero\u2019 for gas.<\/p>\n

Mavuso said there are several potential sources of gas that could help mitigate the coming cliff \u2013 including major developments in Namibia and Mozambique, and the Brulpadda and Luiperd prospects off the Cape Coast.<\/p>\n

However, she said that South Africa has not even begun the investment needed in infrastructure for these sources of supply to be able to reach Gauteng and KwaZulu-Natal where most users are.<\/p>\n

\u201cTalks on developing Brulpadda and Luiperd have been stuck for some time over whether Petro SA will be an anchor consumer. PetroSA\u2019s Mossgas refinery has been sitting idle for four years since its last gas supply source was exhausted.\u201d<\/p>\n

\u201cFor TotalEnergies to commit to the huge investment needed to bring those resources on stream, it needs to secure agreements with large-scale buyers. Even if it does, it will take until 2030 for the project to start supplying gas,\u201d she said.<\/p>\n

The business lead said that South Africa needs a massive coordination effort to deal with the coming drop.<\/p>\n

\u201cPotential users of gas, both public and private sector, from industry to electricity production, need to form agreements with potential suppliers and logistics providers to allow the investment to happen.<\/p>\n

\u201cMost important, though, is the role of government in creating an enabling environment for the necessary licensing, particularly the Petroleum Agency of South Africa and the Department of Mineral Resources and Energy,\u201d she said.<\/p>\n

\u201cBy coordinating the right expertise, political will and focus on solutions, we can make progress. We cannot afford to waste another day.\u201d<\/p>\n

source:businesstech<\/b><\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. South Africa is heading for another cliff, with the country\u2019s gas supply expected to run out in as little as two years, says Business Leadership South Africa CEO, Busi Mavuso. \u201cMany industries rely on gas as an energy source, from glass making to beverages. The current main source of supply, two gas […]<\/p>\n","protected":false},"author":84,"featured_media":62201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[274,315,275],"class_list":["post-62202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nSouth Africa heading for a cliff - South Africa<\/title>\n<meta name=\"description\" content=\"South Africa is heading for another cliff, with the country\u2019s gas supply expected to run out in as little as two years, ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Africa heading for a cliff\" \/>\n<meta property=\"og:description\" content=\"South Africa is heading for another cliff, with the country\u2019s gas supply expected to run out in as little as two years, ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-04T15:59:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-04T16:13:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/03\/sm_1709556058.719249.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"South Africa heading for a cliff\",\"datePublished\":\"2024-03-04T15:59:08+00:00\",\"dateModified\":\"2024-03-04T16:13:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\"},\"wordCount\":553,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/03\/sm_1709556058.719249.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-heading-for-a-cliff\",\"name\":\"South Africa heading for a cliff - 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