- The National Energy Regulator of South Africa (NERSA) has completed and published a comprehensive strategy report that outlines its vision for the role of gas in South Africa’s evolving energy landscape.
- This strategy addresses the critical challenges facing the domestic gas industry, particularly the declining gas supply from Mozambique, which poses a significant threat to the South African market.
The strategy was developed through extensive stakeholder engagement and reflects input from various industry participants and interested parties within the energy sector. This collaborative approach has shaped this solution-oriented strategy with clear targets and goals aimed at enhancing the security of gas supply in South Africa.
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‘The recommended key policy and strategic interventions would directly shape the timing and the country’s ability to address the growing challenges for gas, particularly the issue of security of supply. It is also important that the right decisions are made at the right time to ensure that gas remains part of the future energy system, alongside renewable energy and hydrogen, for the benefit of the country,’ said Ms Nomfundo Maseti, Regulator Member Responsible for Piped-Gas Regulation.
The strategy outlines its key objectives as the following:
- Diversifying and securing gas sources and infrastructure to ensure environmental and social responsibility in gas development.
- Enhancing the competitiveness of gas as an energy source.
- Improving sector regulation and strategic alignment in gas sector planning and development.
- Supporting renewable energy integration and facilitating the transition to a low-carbon economy.
- Strengthening regulatory and industry capacities.
In summary, the strategy:
- recommends a range of viable gas supply options to address the immediate needs for gas and mitigate the impending decline of current supplies from Mozambique. This includes an emphasis on a need for more investments in gas infrastructure, particularly liquefied natural gas (LNG) import facilities and diversified gas supplies from domestic, regional and international sources;
- highlights prioritising LNG as the most feasible option to fill the gas supply gap in the short to medium term, while it also advocates for decisive policy actions to develop indigenous gas resources for long-term energy security;
- emphasises the importance of finalising and implementing critical policy frameworks, including the Gas Master Plan and the Gas Amendment Bill, to foster investment and create a conducive environment for sustainable gas sector growth;
- highlights that strengthening bilateral and regional gas cooperation with Mozambique and exploring partnerships with other countries such as Tanzania, Namibia and Angola are vital for securing additional gas supplies;
- advocates for the increased use of gas in key economic sectors, such as power generation, industry and transport, to facilitate coordination among gas, renewable energy and hydrogen; and
- highlights policy/regulatory coordination and alignment across the different sectors involving gas, renewable energy and hydrogen, as well as integrated energy planning, as critical to achieving the coordinated development of these energy sources.
A full copy of the strategy report is available on the NERSA website: www.nersa.org.za or link to the frequently asked questions HEREÂ
Author: Bryan Groenendaal
