Cape Town: Mineral and Petroleum Resources Minister Gwede Mantashe has emphasized that developing South Africa’s gas and oil potential could significantly boost economic growth. The South African government is pushing for accelerated oil exploration in the country’s waters, with hopes that harnessing these resources could elevate the nation’s economic growth rate to between 5% and 8%.
According to South African Government News Agency, the government has decided to streamline some of its State-owned Entities to establish the South African National Petroleum Company (SANPC). This strategic move aims to create a State-owned entity dedicated to pursuing oil and gas projects actively. Speaking at the 4th Annual Southern Africa Oil and Gas Conference in Cape Town, Mantashe highlighted the potential of South Africa’s coastal and adjoining waters, which are estimated to contain approximately nine billion barrels of oil and an additional 11 billion barrels oil equivalent of natural gas.
Mantashe also pointed out the government’s swift actions in finalizing the Gas Master Plan, which aims to achieve a stable and growing economy. The Gas Master Plan is designed to complement existing energy policies and contribute to an integrated energy planning approach for the country. It provides a framework for the role of natural gas within the energy mix and offers policy direction to the industry.
The plan’s objectives include diversifying supply options from both local and international markets and developing an efficient energy infrastructure network. This network would encompass gas storage facilities, liquefied natural gas import facilities, pipeline networks, and regasification plants. Through these efforts, the plan is expected to enhance localization, create jobs, and promote inclusive economic growth.
Mantashe noted the interest of the European bloc in Africa as a source to diversify its gas supplies. While this opens up opportunities for earning foreign revenue, Mantashe stressed the importance of not exporting gas at the expense of domestic and regional markets. He urged the Southern African Development Community (SADC) countries to be resolute in unlocking oil and gas exploration and development.
The Minister highlighted that this presents SADC countries with a chance to influence global oil and gas prices by developing their resources. He called for a concerted effort among African nations to ensure the growth and thriving of the oil and gas sector through investments in upstream development to achieve economic prosperity.