February 2024

The advancement of natural gas reserves in Amersfoort, Mpumalanga, is being promoted as having the potential to reshape South Africa’s energy dynamics significantly and play a key role in the nation’s pursuit of a more diversified and sustainable energy future.

Nevertheless, environmental organizations raise questions about whether gas qualifies as a green energy source and if it will contribute to South Africa’s commitments in the global fight against climate change.

In 2023, Kinetiko Energy, an Australian gas exploration company, and the Industrial Corporation of South Africa (IDC) collaboratively entered into a liquefied natural gas (LNG) development project for Amersfoort. Situated near Volksrust in the Mpumalanga-KwaZulu-Natal provincial border area, this town holds strategic importance at the core of the country’s energy centre.

During a webinar organized by EE Business Intelligence to discuss the prospects of gas energy security and the potential contribution of gas-to-power (GtP), Jaco Human, the executive officer of IGUA-SA, expressed concerns about an impending shortage. This issue stems from Sasol’s announcement in the previous year, indicating a cessation of supply to downstream consumers starting in 2026.

The shortfall is a result of Sasol’s challenges in securing adequate reserves, compounded by an expected reduction in supply from southern Mozambique. Additionally, Sasol intends to allocate the remaining gas to replace coal in its operations, aligning with its decarbonization efforts.