Cape town: Mineral and Petroleum Resources Minister Gwede Mantashe has made a robust defence for natural gas development, framing it as essential to industrialisation and a 'just and realistic energy transition' for the continent. The Minister was speaking at the 11th edition of the Africa Gas Forum held on the sidelines of the Africa Energy Indaba in Cape Town.
According to South African Government News Agency, some 600 million Africans lack access to electricity, a reality Mantashe described as both a social and industrial crisis. 'Without reliable energy, there can be no manufacturing base, no beneficiation, and no meaningful job creation,' he stated. Mantashe emphasized the need for Africa to redefine its narrative from one of energy deficit to proactive industrial enablement, with natural gas playing a central role.
'Africa accounts for 7% of known global gas reserves and contributes less than 4% of global greenhouse gas emissions. In that context, the strategic utilisation of our domestic gas resources is not speculative; it is foundational to a just and realistic energy transition that recognises our socio-economic realities,' Mantashe said. He noted that expert analysis has identified gas as the 'most effective transition fuel for the continent', offering reliable power and lower emissions.
Mantashe highlighted South Africa's critical energy juncture, with Mozambique's Pande and Temane fields in decline, which have provided 90% of South Africa's needs for over 20 years. He stated, 'This is not merely an industry concern; it is a national economic risk. We cannot allow what happened in the electricity sector to be replicated in the gas sector.'
To address this, Mantashe revealed a two-pronged strategy: immediate imports and accelerated domestic development. He acknowledged Sasol's proposed Methane-Rich Gas (MRG) as a bridging solution for the period 2028 to 2030, providing 'critical breathing space' for LNG import infrastructure finalisation.
Mantashe also discussed offshore exploration activities, led by independent operators, despite resistance from environmental lobby groups. Significant discoveries in the Orange Basin and advancements in the Outeniqua Basin by companies like TotalEnergies, Shell, and Africa Energy Corp could enhance South Africa's resource base and GDP prospects.
On domestic developments, he mentioned the Virginia Gas Project in the Free State, the Thungela Resources' Lephalale coalbed methane project, and Kinetiko's gas project in Mpumalanga, all progressing toward production. Additionally, a seismic survey in the Central Karoo has improved geological understanding, with plans to lift the moratorium on shale gas once regulations are in place.
Underpinning these developments are legislative reforms such as the Upstream Petroleum Resources Development Act (UPRDA), which aims to streamline exploration and production processes and ensure direct national participation through a 20% carried interest for the State. The South African National Petroleum Company (SANPC) Bill seeks to establish a state-owned entity to manage strategic interests across the petroleum value chain.
Mantashe assured investors and partners that the regulatory framework is stabilising, with infrastructure roll-out underway and demand fundamentals anchored in policy. 'The next frontier lies in strengthening midstream connectivity and downstream market certainty to convert gas molecules into industrial output, employment, and economic resilience,' he stated, advocating for responsible and strategic drilling to benefit South Africa and the African continent.