- South Africa’s Department of Mineral Resources and Energy (DMRE) today released the Gas Master Plan Base Case report for public inputs.
“At just 2.6% of the country’s total energy mix, South Africa’s natural gas market is small, but with all its inherent benefits, it has the potential to completely change the economy by stimulating economic growth and development, stability, and job creation.
The meaningful addition of natural gas to the country’s energy mix will rejuvenate an overburdened, out-dated energy infrastructure and reduce cyclical energy shortfalls. Perhaps even more importantly, it will stimulate the economy by allowing business and industry to lower their energy and operational spend while also creating significant numbers of new jobs and skills development opportunities.
Considering that nearly 90% of South Africa’s existing natural gas demand is supplied by a single entity, namely Sasol Gas, the associated economic and employment risks of limited supply options, development and sourcing of alternative natural gas resources are high. It is imperative to ensure economic and employment stability within the natural gas sector by introducing more suppliers.
Southern Africa’s gas potential has been revealed by major discoveries that, when developed, widen options for greater regional energy trade. South Africa’s unconventional gas potential remains to be quantified but raises the prospect of possible domestic production in the longer term. Globally the natural gas industry has moved into a supply surplus, favouring a larger role for gas as a clean fossil fuel in many countries’ energypolicies.” DMRE
The purpose of the basecase report is to establish baseline information for the natural gas sector in South Africa as well as outline the Gas Master Plan roadmap. Such baseline information includes an overview of the gas value chain and regulatory framework. The report also sets the scene for the Gas Master Plan development process.
The Gas Master Plan, once developed, will serve as a policy instrument, providing a roadmap for taking strategic, political and institutional decisions which will guide industry investment planning and coordinated implementation.
Members of the public and affected stakeholders are invited to provide inputs and/or comments on the basecase report by no later than 31 January 2022.
Author: Bryan Groenendaal